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It is approaching recent low of 10,094 forming a bullish AB=CD pattern. Breakdown from this support may drag the index down to levels of 10,008-9,900 which is 127% & 161.8% Fibonacci retracement levels of the BC leg respectively
The Nifty50 index failed to trade beyond the 78.6% Fibonacci retracement level placed at 10,405 levels leading to a sharp correction along with high volumes.
Further, it is approaching recent low of 10,094 forming a bullish AB=CD pattern. Breakdown from this support may drag the index down to levels of 10,008-9,900 which is 127% & 161.8% Fibonacci retracement levels of the BC leg respectively.
However, a sustained trade above 10094 can trigger short covering rally which could take the index to levels of 10,290-10,350. Moreover, a trade beyond 10,405 will invalidate the bullish AB=CD pattern setup taking it previous highs of 10530.
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