Nifty 50 trading setups for 18th December
Today's price action was totally unexpected. Nifty 50 fell more than 300 points. 24500 was considered a support but was immediately broken and there was no recovery after that. The market did not behave according to our trading plan today and hence no trade was possible for us. Nifty was so weak that it closed below 24330.
Nifty 50 is slowly becoming bearish and in case the 24181 level is tested again then we will have targets till 23881. Fore Nifty to be bullish again it has to sustain above 24800. The market is difficult to predict between these two levels.
Nifty is looking bearish right now and there needs to be serious push from the bulls to reclaim the lost levels above. The resistance is coinciding with Fibonacci levels and was not expected earlier. However, the price action on 12th December changed the outlook to positive. But now the bears are again taking control.
We might see following trading setups on 18th December in Nifty 50.
For Long trades:
Scenario #1: Price might open gap down and go below 24181 and then there is quick recovery and close above 24330 and the rejection of 24330 to the upside. The targets can be till 24500.
Scenario #1: Nifty opens gap up and then continue to trade above 9 EMA and then it tests 24500 and breaks to the upside. The target can be till 24700.
For short trades:
Scenario #1: The market opens flat and goes till 24500 and gets rejected downwards and tests 24330 and close below it. The targets can be up to 24181.
Scenario #2: The market opens gap down and after testing 24330 goes down to test 24181. In case there is a strong close below 24181, the price might fall much lower and target can be till 23881.
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