Click the image to enlarge it.
Normally, expanding triangles are completely retraced. In Nifty, expanding triangle started around 2000 region. If Market has to retrace completely, then it should retrace upto 2000 level. If market has to retrace the last leg of the expanding triangle, then it should retrace upto 2500 level. But, so far Nifty retraced upto 2896 level. When compared to other possible corrections, the present correction is a shallow one. Only if market is very strong and the upside is huge, we could see a shallow correction.
If that is the case, then we should not see a downside below 3000 level and also if the conceived pattern is validated, then we could see a huge rally in coming weeks and probably, the rally would be the fastest in this bull market and initially it should move above 3800.
The present view is validated, if and only if, Nifty stays above 3000 level. If that level is violated, then we could see correction extending towards 2500 level.
