The Nifty broke down from the red neckline of the bearish head and shoulder pattern in the beginning of August 2011 giving a target of 3900.The recent rally to 5399 was a classic test of the neckline and the reaction from 5399 a resumption of the downtrend which was confirmed with a break below the low of 4720.
The crucial support of 4650-4675-4720 level too was broken indicating further selling to come.
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