The bounce materialized from the support zone of 5220-5190 . The short term Uptrend looks strong but is it a corrective bounce only or something bigger ?. Lets check out the probabilities -
WEEKLY UPDATE :
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Not able to update a new post due to net connectivity issue .
So the bounce is on as per this post from the support zone and trendline mentioned. Now its the nature of bounce that will decide its a new impulse or a corrective of the previous fall.
Indicator wise there is no weakness in daily or hourly TF.
Price wise we have closed above 20dma at 5335 and if held on closing basis will lead to further upmove.
Option data suggests at developing support at 5300 levels and probable resistance at 5600 with initial resistance near 5400
EW wise we may be in wave 3 from the low of 5216.
Closing above 5390 will be positionally bullish and likewise closing below 5260 will be bearish in the short term.
5300-5310 are support levels below 5335 and 5450,5515,5530 are targets above.
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Check out the charts with comments . Please go through them carefully .
1. Monthly Chart :
We may be in corrective bounce only.
2. Weekly Chart :
The corrective bounce may be in the last leg.
3. Daily Chart :
The last leg of the bounce may be in its 3rd wave.
4. Hourly Chart :
The last leg may be forming an Ending Diagonal Pattern as follows. ( Though not very sure about it )
5. Target Zone for this upmove may be-
6. Alternate probability with Bullish implications may be as follows ( owing to liquidity and news flow )
The Short term trend is Up but may fizzle out in the target zone mentioned. Trade with Trend following methods unless reversal is signalled and confirmed by price.
