Weekly Chart II
Weekly charts show a bearish engulfing pattern with a higher high and higher low on above average volumes.The Engulfing Bearish pattern is commonly found at market tops and at the beginning of a bearish price decline and is a bearish reversal pattern.
However, a variation of this pattern is called the Last Engulfing Bearish pattern. This variation is commonly found after an extended down trend and represents the bears final attempt to drive the market price lower. If one is short and a Last Engulfing Bearish pattern forms, one should identify a protective stop level near the highs of the Last Engulfing Bearish pattern to protect any profit in the trade. Stochastics turning up from the oversold region and in a buy supports this view.
The scenario as of now is bearish with the Nifty below all important trendlines and EMA's as shown in the second chart. 4825 is key support to further fall.
The daily chart shows the week's action with an evening star pattern making a lower high at 5020 once again and successfully taking the Nifty down to almost touch the uptrendline from 4531 lows.Oscillators show more weakness may follow. Key support at 4820.Bullishness to return only on scaling 5020.
Half Hourly Chart
Half Hourly Charts show the trend decisively down. First sign of bullishness on scaling 4948.
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