The previous week’s closing price was strong enough to have traders thinking of a bull market, but is now a good time to be a bull trader?
As you can see in the chart, we very often get price levels, such as 15800, 16800 & 17600. This is the perfect example of the assumption of technical analysis, “History tends to repeat itself.”
Nifty gave eight touches to 16800nine keys to 16600and finally five keys to 15800.
Currently, the price is heading towards 16800which is the resistance so far to the crafty.
If you notice like a hawk, there will be a conclusion that prices have reached 17600 after the break-up of 16800.
Let’s analyze and gather some clues from the lower timeframe charts, but remember to keep the big picture in mind.
After analyzing the weekly chart, we noted our levels. But prices don’t fall exactly from these levels. In effect, 1 to 2 % penetration is acceptable on resistance.
There are 3 price confluence zones for Owl:
1) The price works for the upper band of the channel parallel to 16931.
2) 16989 is a 61.8% Fibonacci retracement of the previous move.
3) The price broke 200 EMA.
The parallel channel is valid with 8 lower band keys, 14 control line keys, finally 3 upper and touched keys. Please note that the sellers are strong in the upper band of the parallel channel.