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NIFTY 50….Touchdown! Or not? for NSE:NIFTY by ruebennase

Hello Traders,
NIFTY50 has extended the drop and touched the price area I favored for this scenario!
This move was close to an 1.618 Fib.-Extension of waves a!
The question is:“was it all?“
At the weekly chart, you will see, that the drop from the ATH @ 18604 has just retrace a 0.382 of the advance from 14151-18604. This is a typical retracement for a wave 4 of any degree. If this was a wave 4, the next move should have start to new ATH`s!
But, when ATH @ 18604 a wave ((v)) was finished, N50 has much room to decline.
Again, a typical target for a corrective setback is called, …“back to wave 4 of one lesser degree!“
In this case, we have to focus on the price range of 13600-13100 area.
Notice that I favor the hourly, daily….close in this case!
Often such targets will be achieved with a deep „spike/peak“ below such a range!

Short term to observe, we have the following setup!

Hourly!

From 16782 over 16931 to 17180 I have drawn a parallel trend channel. If this channel will be broke to the downside, the door is open for a „re-test“ of the low at 16782! A break of this area give way to 16666!

On the other hand.

A close above Thursday candle @ 17253 will set the opportunity to advance to the middle line of the channel @ ~17400 area in the coming hours!

A break of that level opens the door to 17480 and 17530-17590!

Be patient this day’s!

Have a great Sunday…..

Feel free to ask or comment!

Trading this analysis is at your own risk!

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