Is Nifty 50 Bearish?
Nifty 50 has fallen over 90 pts today. The price has respected our level of 24681. Instead of acting bullish and forming a head and shoulder pattern, the prices tested 24600 and fell around 60 pts from there. 24600 was suggested as a possible level below which we can expect a bearish move. The target was till 24500. The prices did not go below 24530.
In the larger picture, Nifty is still bullish. 24500 is still a support and further price action is needed to break the level. In case 24500 is breached, then Nifty 50 can act bearish and touch 24300.
For long trades, I can imagine two scenarios. First, the price might open gap down or flat and then after touching the 24500 level the price needs to test 24600 level. If the level of 24600 is sustained in first half the the price might test 24681 again but a breakout might be little difficult.
For short trades, the ideal setup would be to open flat and then a spike up above 24600 and a quick fall below 24500 and a strong close. The other setup can be a gap down open below 24500 and then a strong move up and then falling below day low with prices sustaining below 9 EMA.
We have to remember that the prices might be consolidating and move sideways for some more time.
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