NIFTY Fut Indicates Strong Reversal Pattern on daily Charts. Detailed Price point and Elliot wave analysis

NIFTY FUTURE- Review of 14 ^th June and Update for 17^th June

NIFTY FUT – marked a strong reversal pattern on the daily charts, typically a island reversal pattern where we witnessed a isolated low being made on the previous day.

With this reversal NIFTY FUT managed to pull back and close at near 5800 levels. Readers will recall from previous posts that 5760 was a strong swing level to watch out for on either side for BULLS and BEARS and this will continue to remain so. On Friday once markets moved above 5760 we saw a strong a continued upmove for the rest of the day as this level then acted as a support.

Now At this level there are two conflicting views as a swing traders and where markets may go from here. One an island reversal typically signals a change in trend and a new trend on the other side. Two at the same time we have seen a strong downmove and typically should see some resistance at retracements.

Check the chart  below which combines price points Elliot waves and Fibonacci retracement analysis to find the next trading level to watch out for.

NIFTY FUT CHART ANALYSIS-16 JUN

As it stands on the upside 5835-40 levels and above that 5870 will be the key hurdles and if we manage to clear that we can see a strong swing reversal pattern confirmation.

On the downside 5750-60 will be the swing support zones and a breach of that can signal a false reversal and lead to strong downside in coming sessions or weeks.

Based on this my idea to trade for a swing trader would be to look to long in retracements with SL and reversal below sustained moves of 5750 or a swing break out long with SL around 5800 if we manage to clear 5870 levels.

From an intraday point of view it is advisable to use the trading levels.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 5835-40  sustaining above which it will target 5865,5890
POWERTRADE TREND DECIDER OF THE DAY ------- 5800-05
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5755-60
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5730,5690