Currently Blood, Fear, Anger is there on the streets especially for the Put writers, Investors, Long Only traders. But let me tell you something, “markets are filled with emotions, fear & greed”.
It is easy to say “buy when others are fearful and sell when others are greedy”. Markets are offering one such fearful scenario which brings more discomfort to most of the traders.
I’m just going through the charts where I am seeing too many emotions from the traders, especially investors too joining this bearish bandwagon.
However, from the charting perspective, I am seeing too many gaps open for this current swing and one of my favorite pattern Island Gap reversal is open in Nifty Spot. This comes around 12071 levels. Practically speaking it could be an ideal zone to consider longs for the target of the closure of the Island reversal gap in the next 6-8 months of horizon period.
Island Gap reversal is one of my favorite trade setups. Which we talked about it numerous times in our blog with live examples. Following are some of the trade setups and tutorials.
Nifty Smallcap – Bullish Island Reversal Pattern to be Revisited?
Nifty FMCG – Bearish Island Reversal Pattern to be Revisited?
How to trade island gap reversal setups
Island Gap Reversal Zone in Bank Nifty Futures
That means if you are an investor out there It is a reasonable opportunity to get a fair value at the current juncture.
At the time of writing Nifty spot had done a low of 10294. Its to time to wait for corrections and add positions at market corrections towards 12000 levels with an estimated timeframe of 6-8 months.
