Nifty’s sharp rally from Feb lows stalled over the last few days and we face a risk of trend reversal –
At Jackson Hole, Yellen said case for rate hike has strengthened. FX markets didn’t really buy Yellen’s hawkish comment, which is evident from the retreat in the US dollar in during the half hour post Yellen speech.
However, dollar regained bid tone and strengthened across the board, heading into Friday’s NY closing. US equities ended lower, while treasury yields rallied.
Hence, I believe the rising trend line on Nifty’s daily chart could be breached
On the downside, 23.6% Fibo of Feb low and Aug high could be the first major support. The level stands at 8279 levels.
Across the globe, Dow Jones is fast approaching the 23.6% Fibo retracement level of 18,264.
Given I hold a bearish view now, I (& bears out there) need to watch for a rebound off the rising trend line support..
Happy Trading !