The Bank Nifty could not close above the crucial 11161 and reacted to form a bearish engulfing pattern.Good volumes and stochastics in the over bought territory signal more selling to come.The OBV though maintains the positive divergence.The close is below the 200 dema after closing above it yesterday.
Daily Chart II
Another interpretation of the bearish engulfing pattern is , it could be panic selling byt the last of the sellers. This could be possible with an inverse head and shoulder pattern forming.Break above the neckline could then give a rally upto the previous peak at 11912.
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