Nifty 50, bullish to 9000 then pullback

Updated: Dec 23, 2019


The Indian stock index, NSE's Nifty 50, is following some really nice trends. Bullish converging wedge on weekly (daily chart included here); brings bottom support slope line and top 9003 horizontal resistance line into the shown chart. On daily, fibonacci retracement from 2016 low (6815) to 2016 high (9003) was a seamless rise for the index. This followed a pullback aligning 50% retracement at 7898 in November. A double bottom / bullish Gartley there-after during November / December, pushed the index higher to current 8821 price level.

Now, index is heading towards the resistance at 9003. Oversold strength indicated by nearing 80% RSI also points towards some coming loss of momentum.

Nifty-50 could continue movement north for next few days, but is likely to pull-back in-order to re-gain its strength, possibly until 50% retracement (8400) for the second fibonacci pattern (from December 2016 low to February 2017 high). It could fall further to touch ascending slope, and then take a reversal or else take a reversal at 50% level itself. (moves as depicted by green and red arrows).

Expect lot of action in next few weeks thereby generating some buy / hold / sell opportunities for mid-term trading gains. From a long term buy and hold investment plan perspective, a break above 9003 resistance or slightly higher could confirm continued bull (inline with the global indices) and hence a buy and hold signal.

#NIFTY

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