Reigning The Nifty 27th July 2012

Daily Chart 

Half Hourly Chart

Bearish engulfing pattern formed. 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 is in the oversold region and Nifty close to 4090-5015 support may lead to a pullback which supports the above view.

 

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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com