On looking at the daily chart of Nifty futures closely, it can be seen that there isa gap from 25th November (high 6141.5) which was never filled till date.
Even today, the selling took Nifty futures to 6142.5, still leaving a gap of 1 point.
Bulls can say the gap has been filled. If Nifty futures does not go below 6141, we can see a bounce in the market (maybe to try and fill the wide gap left today).
However, should Nifty futures open with another gap down below 6141 tomorrow, this can be a huge island reversal !! (extremely bearish till it remains below 6141).
Watch the open and low tomorrow.
Even today, the selling took Nifty futures to 6142.5, still leaving a gap of 1 point.
Bulls can say the gap has been filled. If Nifty futures does not go below 6141, we can see a bounce in the market (maybe to try and fill the wide gap left today).
However, should Nifty futures open with another gap down below 6141 tomorrow, this can be a huge island reversal !! (extremely bearish till it remains below 6141).
Watch the open and low tomorrow.
3 comments:
SGX Nifty down -22 points @ 6122
Sir I think island reversal occurs when the entire island trading takes place as a high/low...here it lies along the normal trading range...high/low not formed...
This will be what is called a 'cluster island reversal'
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