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.