NIFTY on a Weekly Timeframe

21 Nov

Trend: The price has been in an uptrend (series of higher highs and higher lows), peaking at a swing high, followed by a significant pullback.
Structure: A potential bearish reversal pattern is present as the price breaks below a trend line and tests lower levels.

Key Levels:

Swing High: ~25,890.41 (serves as resistance).
Entry Point: 24,547.29 (current short trade entry).
Stop Loss (SL): ~25,890.41 (protects against further upward movement).
Take Profit (TP):
TP1: 23,204.16
TP2: 21,861.04
TP3: 20,517.91
TP4: 19,174.78

ATR (Average True Range): Suggests volatility, helping set dynamic stop-losses.
RSI: Moderate level, indicating no extreme overbought/oversold condition.
Market State: Bearish with ranging price movement.
Accuracy of Current Strategy: 83.32% historically.

Patterns such as breakouts from trend-lines (as shown) often align with bearish movements if supported by volume or macro conditions.
Based on historical data from the reference material, triangles, flags, and descending patterns in a downtrend reinforce bearish momentum.

Action: Sell (short trade).
Stop-Loss: Set at ~25,890.41.
Take-Profit:
Conservative: TP1 ~23,204.16.
Aggressive: Lower targets (TP3 or TP4).