Nifty Index 50 failed to show strength in upward direction too. Earlier, it did not fall much despite divergence and now it is not moving upward. It is frustrating. Anyhow, it remained exactly within black line boundaries of my last week’s yellow box.
Now, here’s what I am looking at:
Nifty index 50 has respected a parallel channel and is on the verge of slipping from it. If that happens, the green trendline should give support. On the flip side, if Nifty continues to somehow remain above lower trendline of channel, then it can again try to cross the glorious level of 16000
Thus, scenarios for the week ahead (highlighted as yellow box with black lines dissecting scenarios)…
|Scenario||Probability||Anticipated Price Action|
|Consolidation||High||Between 15850 and 15550|
|Downtrend||Med||If breach below 15550; to drop somewhere till 15350|
|Uptrend||Low||If breach above 15850; to rise somewhere till 16150|
The lack of volatility is always a sign of quiet before storm. With weekly timeframe also showing signs of exhaustion, my bias is on the downside for next couple of weeks. But market doesn’t read my blogs. So, let’s see
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