Daily Chart
OBV fails to reach lower lows
Half Hourly Chart
A bearish engulfing pattern made today where the black real body ( distance between open to close ) engulfs the real body of the previous days candle.The Engulfing Bearish pattern is commonly found at market tops and at the beginning of a bearish price decline.
This may well be " Last Engulfing
Bearish pattern" since the correction is on from 5629 and is more than two months old.. A bearish englufing pattern after
an extended down trend represents the bears final
attempt to drive the market price lower. If one is short
and a Last Engulfing Bearish pattern forms, one should
identify a protective stop level near the highs of the
Last Engulfing Bearish pattern to protect any profit
in the trade. Positive divergence on the OBV supports this view. Half hourly charts show Nifty close to crucial supports
The flag pattern is still valid so bears need to be alert for a change in sentiment.
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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