Hi All,
Markets continued their upward journey and kept on creating all time highs for past few months. Nifty hit 11760.2 where as Sensex touched 38989.75, missing the 39k mark buy just 11 odd points.
But after such huge rally of more than 1000 points from 10500 levels, Nifty daily chart finally showing some signs of weakness.
Nifty showed a bearish engulf pattern last week, after which it again tried to create yet another high on Friday, however was not successful in breaching the 11760 mark. And today there is yet another bearish engulf candle and a sizable red candle on the daily chart, which means, clearly bears are making their presence felt. Nifty also broke 10639 mark today, there by creating a lower bottom.
So,
1. Nifty has given a Bearish Engulf set up on 28&29 August
2. Another bearish engulf pattern today
3. Broken the immediate support near 11639
4. Created a lower top lower bottom formation on daily charts
This is surely a cautious signal for bulls and any mid term longs should be held with tight trailing stops.
At the current price of 11639, the near term bias looks negative now with targets near 11590-11530-11480 and with resistance (stops) above the life time highs of 11760-10770. The short term bias only becomes bearish if Nifty sustains below 11480.
Traders are advised to take positions accordingly for preferred time frames.
Cheers
Hrishi
Markets continued their upward journey and kept on creating all time highs for past few months. Nifty hit 11760.2 where as Sensex touched 38989.75, missing the 39k mark buy just 11 odd points.
But after such huge rally of more than 1000 points from 10500 levels, Nifty daily chart finally showing some signs of weakness.
Nifty showed a bearish engulf pattern last week, after which it again tried to create yet another high on Friday, however was not successful in breaching the 11760 mark. And today there is yet another bearish engulf candle and a sizable red candle on the daily chart, which means, clearly bears are making their presence felt. Nifty also broke 10639 mark today, there by creating a lower bottom.
So,
1. Nifty has given a Bearish Engulf set up on 28&29 August
2. Another bearish engulf pattern today
3. Broken the immediate support near 11639
4. Created a lower top lower bottom formation on daily charts
This is surely a cautious signal for bulls and any mid term longs should be held with tight trailing stops.
At the current price of 11639, the near term bias looks negative now with targets near 11590-11530-11480 and with resistance (stops) above the life time highs of 11760-10770. The short term bias only becomes bearish if Nifty sustains below 11480.
Traders are advised to take positions accordingly for preferred time frames.
Cheers
Hrishi
