Nifty remains in a consolidation phase between 23,900 (key resistance) and 23,575 (support). The 15-minute RSI highlights a positive divergence along with a bear range violation, indicating potential for an upside move if the support holds.
Key Observations:
Resistance at 23,900: A breakout above this level could trigger a new wave of upside, targeting higher levels.
Support at 23,575: This level aligns with a trendline support and 79% retracement zone. A breach below this could invalidate bullish signals, pushing the index toward the 23,260 double-bottom level supported by a trendline.
RSI Setup: The bull range violation earlier shifted into a bear range violation with positive divergence, hinting at a possible reversal if strength builds above 50.
Strategy Outlook:
Bullish Scenario: Watch for a sustained breakout above 23,900 to confirm bullish momentum.
Bearish Scenario: A breakdown below 23,575 could lead to further downside testing at 23,260.
Traders are advised to stay cautious amid low holiday volumes, waiting for confirmation of either breakout or breakdown.
Regards,
Kavita Agrawal CMT CFA
Kavita Agrawal is very passionate about tech analysis & her analysis empower trader