Nifty has shown sharp decline over past few days and prices have corrected from all time high levels of 12100 towards a low near 11230 levels.
Gann square of 9 is an important technical analysis method that helps us in providing the probable reversal areas.
Following is Nifty chart showing different Gann support and resistance levels based on 180 degree angle.
Nifty Gann chart: (published in morning on 25th July 2019 before markets opened)
Gann Projection: We have shown Nifty Gann projection on daily chart which is an advance analysis tool for forecasting resistance & support zones. The important zone as per Gann was placed near 11936. There was a push on the upside towards 12103 levels but could not sustain for long and reversed from there. This clearly suggests that there is change in wind and now 11100 will act as an important support which is near the Gann level. Always remember Gann projections give us the zone and not necessarily the exact price point.
The levels are derived using the Gann 180 degree square of nine. During the up move we can see that prices were overshooting but reversing back on most of the occasions. Even this time when the level of 11936 was broken on upside to make life time highs near 12103 there was a reversal back below the Gann level. The reversal takes halt near the Gann supports and the same is now near 11078. So, 11078 – 11200 is the important support zone and if the same is taken out with momentum then we will eye for much lower levels. For now it is important to see how prices behave near this zone of supports.
Nifty has managed to protect the lower zone near 11200 levels so far. Is this hinting towards a probable reversal or some base formation or are we headed for another series of declines?
Combine the above method with Hurst’s Time cycles and you will know whether the level of around 11200 – 11100 is going to be protected or not. It is amazing to see how these advanced methods get aligned together.
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