Daily Chart
Half Hourly Chart
The Nifty made an Island Reversal pattern.This pattern occurs when
prices gap up when in a strong uptrend - like the one we had from June
lows- and then gaps down again on the way down.This leaves certain
candles in an "island" as can be seen on the daily chart above the two
elipse.This is a strong reversal signal and the signal is stronger if
the island is
formed by several bars rather than one which is the case with Nifty.Till
recovery signals are seen the Nifty will therefore remain bearish.
The half hourly chart shows a bearish head and shoulder pattern with
neckline breached giving a target of 5560.This is close to the low of
5583 and the support line drawn through lows made since the top of
5814.5567 is the 23.6% retracement of the rise from 4770 to 5814.This
should prove a strong support.If breaks then the Nifty would have made a
lower high and lower low sequence turning the trend down.
Supports are at 5603-5583-5540. Resistance is at gap of 5650-5668, 5698-5710
Supports are at 5603-5583-5540. Resistance is at gap of 5650-5668, 5698-5710
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Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
Happy Trading !!
Lakshmi Ramachandran
www.vipreetsafetrading.com
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