Half Hourly Chart
Daily ChartThe right shoulder has formed and threatens to break the neckline which is at 4170 tomorrow, as per the daily charts. On half hourly charts it has already broken the neckline though not decisively. The target is 3600.
Yesterday I wrote, Rising wedge formation--a bearish formation-- in the last 10 days of trade, with falling volumes which is characteristic of the pattern. The appearance of this formation reiterates the view that this is the forming of the right shoulder of the Head and Shoulders pattern.
The fall has been on high volumes and very poor advance decline figures. The earlier low of 4143 has been violated. So we may expect the fall to continue.
The remaining Positional Longs have been stopped out and further strategy would be to wait for a pullback to short the Nifty.
Happy Trading !!