Update - 16th Dec 05.30 PM
Though, Nifty gaped up at the opening, it did not sustain those levels and gave off substantially from the top.
After today's action, Nifty created a Dark Cloud cover Pattern on daily charts which is a Bearish formation, and the earlier short nifty view is intact with stop loss above the highs. The downward move would be accelerated if Nifty sustains below 12040-12000... the targets would be 11940-11850
Cheers!!!
Update - 13th Dec 11.30 AM
In a surprising way, Nifty held it to the only bullish observation mentioned in the post, of a hidden divergence, and has managed to bounce back a bit, however, after violating the neckline of the H&S pattern.
Hence, traders can think of going short near the current prices 12040-12050, with stop loss above 12100, and targets near 11940-11850.
Please note, since Nifty has bounced back strongly after touching the daily Supertrend, if it manages to sustain above 12100 mark, it is most likely to go further up as it would then confirm a higher top, higher bottom on daily charts...
Cheers!!!
Hi All,
After the Inter market Divergence, though Nifty has created a life high near 12158, it is trading with a negative bias since then with only one positive closing in last 6 days.
Going forward, Nifty will find a crucial support near 11880 - 11840 - 11800 - 11780 mark which is a daily price bottom.
However, the reason to worry for bulls would be that on daily charts, a Head And Shoulder pattern is getting formed with a neck line / support line near 11880, below which one can expect Nifty to even go down till 11600 - 11490 mark.
On a weekly charts, prices have given a Bearish Engulfing Pattern, which is one more cause of concern and hence 11880-11800 are very crucial supports now and would be trend reversal for the near term upmove, and below that even the mid term bias would change to bearish with targets near 11600, 11490 and may be even 11000.
Fort any upmove, Nifty should hold the supports mentioned above, where as after breaking those supports, the recent high of 12160 would act as a trend reversal for the down trend. an immediate upmove can only be possible if Nifty breaks 12k mark on the upside, as there is a RSI hidden divergence on the daily charts, which is the only positive sign right now.
Cheers!
Though, Nifty gaped up at the opening, it did not sustain those levels and gave off substantially from the top.
After today's action, Nifty created a Dark Cloud cover Pattern on daily charts which is a Bearish formation, and the earlier short nifty view is intact with stop loss above the highs. The downward move would be accelerated if Nifty sustains below 12040-12000... the targets would be 11940-11850
Cheers!!!
Update - 13th Dec 11.30 AM
In a surprising way, Nifty held it to the only bullish observation mentioned in the post, of a hidden divergence, and has managed to bounce back a bit, however, after violating the neckline of the H&S pattern.
Hence, traders can think of going short near the current prices 12040-12050, with stop loss above 12100, and targets near 11940-11850.
Please note, since Nifty has bounced back strongly after touching the daily Supertrend, if it manages to sustain above 12100 mark, it is most likely to go further up as it would then confirm a higher top, higher bottom on daily charts...
Cheers!!!
Hi All,
After the Inter market Divergence, though Nifty has created a life high near 12158, it is trading with a negative bias since then with only one positive closing in last 6 days.
Going forward, Nifty will find a crucial support near 11880 - 11840 - 11800 - 11780 mark which is a daily price bottom.
However, the reason to worry for bulls would be that on daily charts, a Head And Shoulder pattern is getting formed with a neck line / support line near 11880, below which one can expect Nifty to even go down till 11600 - 11490 mark.
On a weekly charts, prices have given a Bearish Engulfing Pattern, which is one more cause of concern and hence 11880-11800 are very crucial supports now and would be trend reversal for the near term upmove, and below that even the mid term bias would change to bearish with targets near 11600, 11490 and may be even 11000.
Fort any upmove, Nifty should hold the supports mentioned above, where as after breaking those supports, the recent high of 12160 would act as a trend reversal for the down trend. an immediate upmove can only be possible if Nifty breaks 12k mark on the upside, as there is a RSI hidden divergence on the daily charts, which is the only positive sign right now.
Cheers!
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