“SUMMARY”
This week we completed 3 weeks of TIME duration from Lunar Eclipse which occured on 25th,MARCH.
I shared a detailed post on 24th,MARCH explaining the impact and its consequences on prevailing trend.
I posted very clearly that eclipses always produce REVERSAL of ongoing trend but it would take TIME of atleast 3,weeks before we see that vibrational impact to reflect on prices!
We also discussed that , this anticipated REVERSAL would not be limited to just PRICE it would expand beond PRICE and would also trigger a REVERSAL on overall accessive BULLISH naretive which have been one of the primary factor behind the strong rally from October lows.
So as expected we got everything which we were looking for.
Just for reference sharing the linc for 24th,MARCH article below.
https://ganninsides.com/2024/03/24/could-lunar-eclips-spark-a-minsky-moment-in-financial-markets/
lets start with U-S-INDICES
“S&P”
S&P;500 almost achieved our primary target of 4950 at fridays low.
So the pattern which broke below 5060 tested its primary goal going forward a daily close below 4950 would extend the decline towards its next pattern target of 4840 on downside a failure to close below 4950 would generate a bounce in near term! For s&p price time equality level from October 2023 low comes at 5006 so going forward consider 5006 as a line in sand between week and a very week setup.
Since 5006 is a price and time equality level technical setup would evolve around this level for next few days.
In case index maintains distance from 5006 then next equality level on downside will come at 4700!
In late MARCH when S&P was making new highs on daily basis i kept discussing on a distinct possibility for a significant reversal because on monthly charts INDEX was testing a major gann angle resistance which was in zone of 5250-5350 and we saw INDEX top out at 5265.
“NASDAQ”
along with S&P NASDAQ too have broken down.
In MARCH I have discussed 16500 as a major resistance and we have seen index after taking its time reverse down very sharply.
A break of 15800 here triggered a higher degree breakdown which have medium term target objective of 14500 on downside.
do watch out for NVIDIA as well 739 is a very critical level for long term a close below 739 would trigger a noteworthy collapse which could drag stock below 350 in next few months.
We shall see together how it would impact overall markets.
both these indices have not only broken below their critical supports, along with that they also have broken below an ascending flat topping pattern which was developing since early march.
A breakdown of such category is going to vring markets much lower then their current levels.
So be prepared for that as an investor.
but as a trader we would have to approach things one step at a time.
“update on NIFTY”
https://ganninsides.com/2024/04/07/gann-insides-weekly-market-update-for-subscribers/
As noted in above post which was shared on 7th,APRIL I was looking for a test of 22800 before anticipating a REVERSAL and on expected lines NIFTY went to 22775 on 10th,APRIL and registered a very sharp reversal in subsequent days.
it almost lost 1000 points from its high in just 6 trading sessions!
Going forward as we have been discussing since past few days this decline from the TOP still isn’t enough to trigger a medium term reversal in market.
To trigger a reversal of that magnitude NIFTY would have to break levels of 21710-21530 on spot.
A break below this range would trigger a breakdown of an ascending flat topping pattern which is under development since mid Feb.
U-S-INDICES have already broken this pattern but on NIFTY we are still waiting for that final confirmation to come through!
For short term as we discussed on Friday
https://ganninsides.com/2024/04/19/all-eyes-on-21710-now-which-happens-to-be-the-final-level-of-support-for-nifty/
holding 21710 there was a recovery due towards its resistance of 22100.
and it did got a remarkable recovery which even exceeded above that resistance level.
still 22100 would remain a key level, because thats still a price and time equality level from the high of 22775.
So as far as index restraints from a daily close below 22100 the possiblity of an imminent collapse wont be on offer for now.
Anyways the hexagon pattern which we discussed on Friday is still intact on weekly charts.
Lets see whether that breaks during next week or not!
RELIANCE is going to be very critical stock for next week.
because the market reaction on its results on 23rd,april would co-inside with an annual time cycle date for NIFTY both 23rd and 24th,APRIL are going to be very important cycle dates for not only NIFTY but for overall market as well!
Thats it for now.