Weekly Chart
Since the engulfing bullish pattern has occured during an uptrend , it may be a last engulfing top
which represents the last gasp of the trend. The test to see if this is the case, is, if the
next candle closes below the top of the current (white) candle's real
body i.e, a close below 11624.
The upmove from low of 10004 is corrective having already consumed 22 weeks as against the fall from 11760 to 10004 which took 8 weeks only.
The upmove from low of 10004 is corrective having already consumed 22 weeks as against the fall from 11760 to 10004 which took 8 weeks only.
Daily Chart
The Daily chart too gave a bearish indication with a Hanging Man pattern signalling a potential peak in an uptrend.
Half Hourly Chart
Negative divergences exist showing weakness in the upmove.
Monthly Charts
The monthly chart however is bullish with a breakout from the range trade of past few months.
The trend continues to be up in all time frames.However some signs in lower frame charts calls for caution.
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Happy Trading !!
Lakshmi Ramachandran
