Nifty Reacting

Asking Fibonacci :

Nifty have cracked the trend line as proposed earlier in http://learnthetrick.blogspot.com/2007/02/nifty-head-shoulder.html
If we consider that Nifty will react as per the short term impulse then the possible levels which
can be worked out as :
High : 4245
Low : 2595
Rise = High - Low = 1650,
Using Fibonacci ratios 0.38, 0.5, 0.618 you can have
1650 x 0.38 = 627 (L1)
1650 x 0.50 = 825 (L2)
1650 x 0.618 = 1019.7 (L3)

So now the levels are High - L1, High - L2, High - L3
Level 1 : 4245 - 627 = 3618
Level 2 : 4245 - 825 = 3420
Level 3 : 4245 - 1019.7 = 3225.3

Checking Charts:

Other option is to look for the even longer term trend line if it exist. Now below is the 3 year Nifty plotted on the log scale (For such a longer period I always prefer log scale it makes lot of sense).
Here there seems to be good channel forming.

Now this long term chart clearly states that if Nifty do not breach the bottom trend-line the Long term bullish out look stays intact. Hence 3200~3250 level becomes very critical.