NIFTY DAILY CHART FORMED HEAD & SHOULDER PATTERN - SHORT

15 thg 4, 2020

Hi All - Since the analysis is pretty long, I've listed out all the steps which are required to complete the analysis.
Step 1:
On 15th April 2020 NIFTY closed below the Fibonacci level of '0.236'.
Step 2:
The two black liner lines act as a major RESISTANCE and SUPPORT zone on daily charts. Nifty expected to breakdown the SUPPORT zone since the gap between the Fibonacci levels of 0.236 and this SUPPORT zone is tiny.
Step 3:
NIFTY has formed a HEAD & SHOULDER pattern (Color filled in PINK). Hence RIGHT SHOULDER is expected to reflect the LEFT SHOULDER which may cause a fall in the price levels.
Step 4:
The parallel channel (filled in blue color) is holding inside the NIFTY price movements. If you observe the closing prices for the last two sessions, NIFTY is trying to break out of the blue area but it's getting pulled back.
Step 5:
The green color indicates the inverted HEAD & SHOULDER pattern. RIGHT SHOULDER suggests a similar pattern will form just like the LEFT SHOULDER.
i) The drawn fork lines represent the range-bound movement of the price. Here, if you observe the next set of ranges are pointing downwards only.
ii) If you observe a small amount of inside triangle space is available when we combine Inverted HEAD & SHOULDER with PITCHFORK LINES. I've highlighted a small red color graph image. Hence we shall expect NIFTY to hover inside this space.
Step 6:
SUPPORT ZONE is seen at 8800.
How the level is determined:
The Fibonacci pivot point of 0.382 is plotted at a price point of 8800 and this is also intersecting with the PITCHFORK range-bound lines.

Feel free to drop your queries, would be happy to help!

Regards,
Babu Sathyanarayanan