Market Overview: Nifty 50 Futures
Nifty 50 Wedge Top on the monthly chart. This month, the market posted a weak bear close with a long tail at the bottom and a small body. Currently, the market is trading near the top of the wedge. On the weekly chart, Nifty 50 has shown strong follow-through this week after the bull breakout of the high-1 pattern. The market is now once again approaching the all-time high.
Nifty 50 futures
The Monthly Nifty 50 chart
- General Discussion
- Traders who are in a long position should continue to hold their positions, as the bears failed to form a strong bear bar this month.
- Traders who are not holding any position may enter a long position on a strong bull close above the all-time high, or they can enter long on the next open.
- Deeper into Price Action
- Notice that even after a strong bear reversal attempt, the bears failed to reverse the market, so the chances of a reversal are very low.
- Patterns
- If the bulls are able to give a strong breakout of the wedge top with good follow-through, then traders can expect the market to move up by a measured move based on the height of the wedge pattern.
The Weekly Nifty 50 chart
- General Discussion
- Traders who entered long on the high-1 for a scalp may continue holding their position but with a tight stop loss, as quick reversals are common near important levels like the all-time high.
- Traders who are holding a long position for a swing may continue holding their positions until the market gives strong consecutive bear closes.
- Traders who are not holding any positions may enter a long position once the market gives a strong bull close above the all-time high.
- Deeper into Price Action
- Whenever the market trades near an important level (such as the all-time high or a big round number), traders should expect trading range price action.
- The market has formed an outside bar this week, engulfing the previous week’s bar. Usually, too many inside bars followed by an outside bar are a sign of trading range price action, so traders who are scalping should look for quick exits before a reversal.
- Patterns
- Along with the high-1 breakout, the market has also given a breakout of the inside bar, so traders can expect a measured move up based on the height of the pattern.
Market analysis reports archive
You can access all weekend reports on the Market Analysis page.
