Market Overview: Nifty 50 Futures
Nifty 50 Bear Outside Bar on the weekly chart. This week, the market gave a very strong bear close, closing below several previous weekly bars. In the previous week, the bulls attempted a breakout, but they failed to get good follow-through this week. On the daily chart, Nifty 50 gave a strong bear breakout from the trading range. Now, the bears need a follow-through bar.
Nifty 50 futures
The Weekly Nifty 50 chart
- General Discussion
- Traders who are in a long position as a swing trade may continue holding their positions until the market gives another strong bear close. Traders who were in a long position as a scalp trade may exit their trade.
- Traders who are in a short position may continue holding their trades, as the bulls failed to give a follow-through bar after the bull breakout attempt.
- Traders who are not holding any positions may wait for the next close, as this week’s bear bar is a surprise bar.
- Deeper into the Price Action
- Many bulls would have entered a long position at the open of this week’s bear bar, and now these bulls are trapped.
- These bulls might now scale into their position (in other words, buy more) at the low of the bear bar and then exit at breakeven, which would be around the middle of this week’s bear bar.
- Patterns
- The market has formed a bear outside bar. If the bears are able to give a successful bear breakout with follow-through on a smaller time frame, then traders can enter short and expect the market to reach a measured move down based on the height of the bear bar.
The Daily Nifty 50 chart
- General Discussion
- Traders who are in a short position should continue holding their trades until the bulls are able to form consecutive bull bars and give a close inside the trading range.
- Traders who are not holding any position may enter at the low of the breakout bar, enter after the market gives a follow-through bar, or enter on a pullback.
- Deeper into the Price Action
- If the market forms a trading range after an uptrending market, then as the amount of time spent inside the trading range increases, the probability of a bull breakout moves closer to 50%.
- Patterns
- The market has given a very strong bear breakout of the trading range, so traders can at least expect a measured move down based on the height of the range.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
