Nifty IT Medium term view
We are looking at a 8 year Nifty IT chart
Lets see what the chart is trying to tell us...
- Between 2009 to 2015 the price has risen from 1933 levels to 12908 levels
- Since Jan 2009 till March 2015 the index has been making higher top higher bottom
- It is only after March 2015 that the index is seen making lower top lower bottom on a regular basis
Hence applying Fibonacci retracement level on the entire Bull cycle seen in NIFTY IT since Jan 2009 to March 2015 (roughly 75 months)
- It is further observed that since 2015 Price is trading in a Downtrend channel
- Blue trend line drawn from 2009 lows looks likely to be the Laxman Rekha (Make or Break line)
2 likely scenarios have been charted out...
Eventual target for NIFTY IT-8750-8600 zone which is 38.2% retracement level of the entire rise from 1933 levels to 12908 levels
- Time wise 38.2% of 75 months is 29 months giving us time till Sept 2017
- Channel support around Sept-Oct 2017 comes at 8750 levels
Things that one should consider before initiating a trade
- this is a medium term 6 months view
- Wait for the levels to come
- allow price behavior around key levels discussed in the chart to give further confirmation
- Understand the Risk involved & Reward potential
- Plan your trade accordingly
____________________________________________________________________________
"Be sure you put your feet in the right place, then stand firm." - Abraham Lincoln
____________________________________________________________________________
Take care and safe trading...!!!
Lets see what the chart is trying to tell us...
- Between 2009 to 2015 the price has risen from 1933 levels to 12908 levels
- Since Jan 2009 till March 2015 the index has been making higher top higher bottom
- It is only after March 2015 that the index is seen making lower top lower bottom on a regular basis
Hence applying Fibonacci retracement level on the entire Bull cycle seen in NIFTY IT since Jan 2009 to March 2015 (roughly 75 months)
- It is further observed that since 2015 Price is trading in a Downtrend channel
- Blue trend line drawn from 2009 lows looks likely to be the Laxman Rekha (Make or Break line)
2 likely scenarios have been charted out...
Eventual target for NIFTY IT-8750-8600 zone which is 38.2% retracement level of the entire rise from 1933 levels to 12908 levels
- Time wise 38.2% of 75 months is 29 months giving us time till Sept 2017
- Channel support around Sept-Oct 2017 comes at 8750 levels
Things that one should consider before initiating a trade
- this is a medium term 6 months view
- Wait for the levels to come
- allow price behavior around key levels discussed in the chart to give further confirmation
- Understand the Risk involved & Reward potential
- Plan your trade accordingly
____________________________________________________________________________
"Be sure you put your feet in the right place, then stand firm." - Abraham Lincoln
____________________________________________________________________________
Take care and safe trading...!!!
Publications connexes
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.