Nifty top: Through Trend Triangle and Fibonacci retracement. Let us try to learn today a dual way of determining a top of the current rally through two methods. The first method used here is Fibonacci retracement.
1) Fibonacci Retracement of Nifty to understand important supports and resistances. What we did here was that we took the past significant peak and valley. Through these points we did a Fibonacci retracement which has given us the following conclusion:
a) The probable top of Nifty seems to be near 23398.
b) Today Nifty has closed above an important Fibonacci support level of 22198. This will be immediate support for Nifty.
c) Other important support for Nifty will be 21084. (Long Term Support)
2) The next thing we can do to determine the possible top is try to connect top of the recent weekly candles and bottoms of recent weekly candles. While doing so can see that probable top of spot Nifty near 24359.
Thus through various models you can try to determine tops of current rally or trend. You can reverse the process and try find of the probable bottom in case of downturn.
Disclaimer: Investment in stocks and mutual funds is subject to market risks, please consult your investment advisor before taking financial decisions. The data provided above is for the purpose of analysis and is purely educational in nature. The names of the stocks or index levels of spot Nifty mentioned in the article are for the purpose of education and analysis only. Purpose of this article is educational. Please do not consider this as a recommendation of any sorts.
