Nifty at significant Fibonacci Extension

The recent upmove in Nifty has caught all short sellers on the wrong side. Will this move continue or are we ripe for a big correction?

Let us zoom out and analyse the big picture. See the chart below:

If we check the Fibonacci extension we are currently at the 261.8% retracement of the fall in 2008! This is a very significant zone.

Also if we draw a trendline from the 2008 top we can see we are right at the trendline.

So there is a confluence of resistances at play. A break of this can set Nifty up for very big moves ahead.

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