The red downtrendline proves to be strong resistance till now.The candle formed was a high wave candle.The high wave candle has a very small real body, and it portrays a stock or index plagued by uncertainty. The long shadows reveal volatility.High wave candles portray situations where the market is having difficulty coming to a consensus on a security's value. They are indicative of a market in which uncertainty and indecision prevail. Neither the buyers nor the sellers have a clear sense of which direction the market will head. The forces of supply and demand are equally balanced.The lower low and lower high made however show a downward bias.The broadening falling wedge shown in weekly chart II is a bearish pattern. This formation acts as a consolidation of the trend. If prices are moving down, prices usually continue down after a downside breakout. Till 5300 holds bulls will find favour.
Weekly Chart II
Daily charts show an Inside Day with high at 5923 and low at 5735. Volumes on both the days forming the pattern were nearly equal implying selling pressure on Friday was not too heavy. The move from the recent high from 5944 also seems to be forming the megaphone pattern which is bearish.
As shown on weekly chart II , trading above 5300 will see bulls more active.For the immediate short term 5944-5735 range breakout will show the direction.
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