The Bank Nifty made a lower high lower low candle exuding bearishness. The formation of a pennant right after the break down from a bear flag strengthens the bearishness.Both are continuation patterns indicating the downtrend will resume.
The bear flag ( I have redrawn the trendlines) gives a target of 8100.Support line of the pennant is at 11141 for the week.If broken the pennant gives a target of 8702.
Chart II shows important support at 10411 and resistance at 11348. Break of this resistance or support will be the trend decider.Stochastics is in the overbought zone.
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