4 Crucial levels will decide the Life of on going Correction
Technical Analysis and Market Outlook
(22-04-2015)
Nifty-EOD Chart (21-Apr-2015):- |
| Just click on chart for its enlarged view |
1- 8 Months rally in Broadening Rising Channel
2- Retesting of lower rising line of Broadening Rising Channel on 21-04-2015
3- Long Term Trend decider 200 Day EMA(today at 8180)
Conclusions from EOD chart analysis
Following lines were told on 11-04-2015 in Strong Signals of Short Term Correction in Next Week:-
1- Broadening Rising Channel formation started on 08-08-2015 and since then rally continuation within this channel.
2- As Rising Channel therefore it is a Bearish pattern and its valid breaking down will mean possibility of deeper correction like 2008 because Channel is such 8 months long.
3- Correction is on and no confirmation of its completion yet therefore view is cautious and sustaining beyond lower rising line of this channel should be watched in the coming weeks for first strong signal of next Long Term Trend.
Lower rising line of Broadening Rising Channel was retested at today lowest(8352.70) and firstly sustaining it beyond should be watched in the coming sessions because sustaining below it will mean emergence of deeper correction strong possibility.
Importance of 8269 and 7994 has already been updated in following Weekly Analysis topic on 18-04-2015:-
Correction Continuation & 3 crucial levels are Big Trend Decider of Nifty
8269 is Neckline of 64 sessions Bearish Head and Shoulders Pattern and its valid break down will mean deeper correction confirmation. As 7994 is 100% of Wave-'A' therefore correction continuation possibility up to this level is alive
Correction is on,its continuation is expected and no signal of its completion yet. Long Term Trend decider 200 Day EMA is today at 8180 and finally sustaining it beyond will give correction completion / deeper correction confirmation therefore should be firstly watched in the coming sessions. Importance of following 4 Levels have been updated above and expected that Bulls and Bears fight will be seen near about these 4 Crucial levels as well as finally sustaining beyond these levels will decide the life of on going correction:-
1- 8352.70
2- 8269
3- 8180
4- 7994
Finally sustaining above 8352.70 will mean strong indication of correction completion and sustaining below 7994 will mean deeper correction confirmation after slipping below 7961. As Wave-5 begun from 7961 and once slipping below it will mean deeper correction confirmation because that will be Long Term Trend turning down confirmation also after sustaining below its decider 200 Day EMA(today at 8180).