Half Hourly Chart
Today was an outside day closing in the negative. Outside days are reversal days. It is a two-period pattern that suggests a potential reversal or deceleration of the current trend. The high is higher than the previous day's high and the low is lower than the previous day's low.
The reversal in case of Nifty should be of the downtrend so watch out for supports holding and an upmove ensuing. The nifty has already shown bullish tendencies by bouncing off the 200 dema forming a doji on Monday and a gap up bullish candle on Tuesday.Wednesday, i,e today has formed the Outside day.All bullish signals.
The half hourly charts however show the Nifty weak under the neckline which is at 5700.Today's efforts to break above the neckline failed. Thus only sustaining above 5700 can make the outside day pattern a success else expect further downsides towards the target of the head and shoulder pattern which is 5230.
follow me on twitter http://twitter.com/#!/lucksr
Happy Trading !!