NIFTY ANALYSIS - Bullish and Bearish patterns

Nifty found support at 5970 levels as mentioned in the earlier post and has rallied upto 6210 - 61.8% retracement - the Golden Ratio.

Currently in Day charts both Bullish and Bearish Patterns are in the making.

Bullish Scenario:

DAY Three Drive Pattern Chart:

Projections for the leg 6343-5973

78.6% - 6263
88.6% - 6300.8
113% - 6391
127% - 6443

Breakout above the Channel would lead to new High to 6400++. Current Week HEMA is 6205. A Weekly close above this level would facilitate the Upmove.

Bearish Wolfe Wave pattern in Day Chart:

 

The  Wolfe Wave pattern would materialise only if the channel Breakout does not happen. The target point falls below 5700 levels. Considering the current uptrend, If the week closes above the Week HEMA, then it is advisable to close the shorts. Strict SL should be maintained at 6270 - 80% retracement of the leg 6343-5973.