Nifty 50 Trading Setups for 19th December
The market has continued the down trend. As anticipated, the price tested the last day close, collected the buy side liquidity and then closed below yesterday low. The price did not test the 24181 level immediately and took a lot of time. Even after reaching the level it was unable to break the level. We can see that the price did close below it but this does not qualify as a breakdown. The price should have bounced from the level and then should have closed below the level indicating buyers entry and subsequent seller domination. All this was expected in the first half and that did not happen. The prices did fall more than 100 points but the kind of entry that I wanted was missing.
The market is very interesting now. The down trend has continued but the momentum has reduced near the support. Also, if we look at the prior price action from this support, we will see that the prices were rejected strongly. On the other hand, the prices while coming back to this level did not have that kind of momentum. So there is a good chance that the price might bounce from here tomorrow.
Based on the type of price action formed till now we can expect a bounce from this level but we have to keep in mind that market will need to have some crucial liquidity. This liquidity might lie below 24181 or may be lower. So just because the price open or crosses 24181 we cannot expect a good move downwards. We have to see if there has been liquidity swept from opposite side to fuel the momentum.
Nifty 50 Long trading setups for 19th December.
Scenario #1: Price might open flat or gap down. The price then might fall and then quickly recover to today's close and the take support from 24181.
Scenario #2: The price might open gap up and then after testing 24320 will move up. There is a chance that prices might trend above 20 EMA and 9 EMA.
Nifty 50 Short trading setups for 19th December.
Scenario #1: Price might open flat or slightly gap up and then take liquidity above 24320 and then tests today's day low.
Scenario #2: The price might open gap down and try to approach today's close and gets rejected downwards. The price might take resistance from 9 EMA and 20 EMA.
In the 1 hour timeframe, we can see that the price has reached a demand zone and price might bounce off. However, there are a lot of news coming in the market and prices can behave strangely.
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