Weekly Technical View for 19 Aug onwards – Harish Thakkar

Technical Views from our Guest Author Mr. Harish Thakkar

Nifty Daily Chart

Nifty Daily Chart

Bank Nifty breakdown from consolidation caused Nifty 4-day rally to collapse on Friday 1st hour itself. 1st hour volumes & crack of 123 points can never be a I-D correction of uptrend but nothing else than collapse, explained FNO volume & Hourly price bar charts.
Yet, close above monthly higher swing low, a last bottom 5477, which has monthly swing high top 6229. On weekly & daily downtrend, falling peaks. 5754 is last daily peak above which positional longs will be safer. Till than positional longs, options buying or I-D trading as the opportunities is preferred. Between 5477 to 5754 trade both the direction, where falls are faster than rise.
There are 3 probabilities around 5477

(1) Bottom may lend support & consolidations below 5754.

(2)Breakout failures and opportunities to trade B 2 buy as last trade.

(3)Breakdown of the 5477.Test for the breakdown is break of 3% = 164 points from bottom = 5313(5477-164) & close in breakout area. This will lead to test previous monthly swing lows 4888,4770, 4531.
With making weekly & daily up/dn swings. Use 3 day away rule as stop loss to trade if occurred. Both these points 3% break & 3 day away rules to be referred in Edwards & Magee -Technical Analysis of Stock Trends.

” All things come to those who waits- Steve Nison”

” Stick to your Guns – Edwards & Magee”. 

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