Charts suggest Nifty Energy index could bounce back, says Ravi Nathani

According to the technical analyst, in the past four days, the Nifty Energy index appears to be encountering resistance at 22,650, and a violation of this level could signal the start of accumulation

Nifty Energy
Last close: 22,499.75

Given the current market conditions and the recent sharp correction experienced by the Nifty Energy index, it is projected that the index is preparing for a technical bounce. This, thereby, could result in a potential rally that could take the index up to 24,550.

Observing the trend over the past four trading sessions, the index appears to be encountering resistance at 22,650, and a violation of this level could signal the start of accumulation.

In light of these observations, the recommended trading strategy for traders is to accumulate the index at lower levels.