- Big Black Bearish candle on high volumes.
- Close under 50 dema.
- Close below strong support of 4900.
- Next support comes at 4785.
- Channel break target is at 4750.
- The neckline of the inverse head and shoulders is at 4700.
- Incidentally 4700 is the 38.2% retracement level of rise from 3918 to 5182.
- Daily oscillators have moved below their August lows corresponding low of Nifty is 4353.Remember momentum precedes price. So a test of this level is very much possible.
- Daily stochastics in oversold region. so a bounce could be on the cards.
Half Hourly Chart
- Supports are at 4785-4760-4700-4575.
- All half hourly oscillators are in oversold region and the Rsi14 has shown a positive divergence.
Happy Trading !!