#NIFTY50 Late night learning- Key levels discussion -
Important post- Don't forget to read it full
Daily chart- Nifty has taken support from March 2022 support area, which is positive. It also creates a bullish pattern called morning star (refer pic 1)
Lets breakdown to multiple time frame-
2 hourly chart (refer pic 2)- A double bottom pattern on bigger time frame (daily) is positive. This is also how you take early entries in stocks as well, by breaking down to smaller time frame on bigger time frame support. Remember the trend is still BEARISH (positional). Nifty has just created a HH, which is 2nd signal of reversal (1st was not creating a new LL & creating double bottom). We have to wait for 3rd confirmation. What is third confirmation, tell in comments
15 mins time frame (refer 3rd pic)- The intraday time frame is BULLISH. But does that means we can straight away still in CE tomorrow and enjoy? Hell no! Now see the area, in today run up which as the major pull back/ HL / consolidation today in intraday. Its around 16120-140. This area worked today both as resistance / support.
Now what to see tomorrow? I will wait for market to come to the area mentioned above 16120-140 and give bullish signals, to enter CE trades. Will be keep stop loss below 16110. Wont be looking for PE till this area convincingly breakdown.
I Will be avoiding gap up and continued movement towards upside.
Not sharing targets, so plan that yourself and comment, what it can be & Why?
Note- on Positional basis, the reversal signals are coming, but are yet not confirmed. Don't be super bullish positional. We don't want first dicey 10%, but we want rest 90% most probable.
(only for educational purposes)
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