CNX 500

Hello & welcome to this analysis

The index in daily time frame is retesting a Bullish Harmonic Gartley pattern made in end January which coincides with the formation of a wedge pattern and a double bullish divergence.

A bounce back could be possible if it manages to start sustaining above 20850 for 21500-22500 however, if it breaches the lower trendline of the wedge then a lot more downside would become inevitable.

Harmonic Trading Patterns are formed in a combination of structures and Fibonacci ratios. When they align and give a reversal candle follow through a strong bounce/reversal probability is relatively high.

Wait for confirmation and enter only then, in case of breach of falling trendline avoid the signal.

Regards