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| NIFTY Monthly Candlestick Chart on 24th August 2016 |
NIFTY Monthly Technical Analysis
I did this on 24th August 2016. NIFTY was at 8635 on that day. The chart is long-term view with each candlestick representing a month of NIFTY's trading activity.
A Fibonacci Retracement is drawn from the market top near 8900 in Jan-Mar 2015 to the previous swing low in Aug-Sep 2013 from where the rally begun that ended in Mar 2015.
We can observe that from the high, the market found support at 6825 near 61.8% retracement of the move. From this support, the market is moving upwards again.
Using these pivots, I think that 8900 will continue to remain an important resistance level. The market is near this level today, and so we can expect a big movement upwards or downwards soon.
Downwards, the major support is 6825. Upwards, the market can move to 11000+ or to 10250 in a smaller move. These are the pivots for resistance / targets if NIFTY manages to break through 8900 and sustain an upward momentum.
In either case, the market has neared a decision point after many months of green (positive) candlesticks. We should wait to see what the market does and once it gives a clear indication from 8900, new positions can be entered in long or short.
The market position as of today:
(Charts from Zerodha Kite HTML5 trading platform)
