Rickshaw Man . . .! ! !

Hi All,

While falling by more than 100 points, Nifty has given a Rickshaw Man pattern on the daily charts thanks to the morning freak trade of 7470.

The Rickshaw Man Pattern is the same pattern which appeared on the hourly charts on 13^th January (3^rd hourly candle) after which Nifty fell a bit to start off with, however then gave an upward movement of > 150 points. This pattern shows that there is a lot of indecision and markets can see a huge move either side.

Nifty currently trading at 7394 up by 85 points from yesterday’s close. The bias still remains cautious as still there is not enough confirmation on any charts for a pull back by bulls except the Rickshaw Man pattern explained above.

Going forward levels to watch out for will be

Resistances – 7400 – 7425 – 7475 – 7550 – 7610

Supports – 7350 – 7330 – 7300 – 7235

As the bias still not changed from bearish to bullish, sell on the rise strategy near resistances can be applied for higher probability trades.

Cheers.....