Markets turned bearish once again. With the last week’s close, it had closed with a bullish tone. However, the latest Close, signals, not just bearish, but tremors, in the wait. Look at the candlestick “B”. It had, at the beginning of the week, peeked above last week’s high, but failed to sustain and closed well below the prior week’s low. This kind of Key Reversals, technically are very strong reversal signals. Now compare a nearly similar situation occurred on Nov 1st week, which is marked by “A”. This Candle stick, although, was similar in nature, was not that bearish (Did not close so much lower than the prior week, compared to “B”. . Still we saw fierce selling for the next two weeks. Hence, there is no harm in expecting a much worse situation in the coming weeks. Let us look at another way. This weeks’ peek was from the Top trend line “T T”. Normally, such moves breaks below the Bottom trend line “B T” .That is the worst case. So, if NIFTY cannot take support from the Bottom trend line “BT”, which is approximately at 5800, them we might see, unexpected levels, in the coming weeks.
Disclaimer: This is my personal view and any investment / disinvestment decisions should be taken in consultation with your financial consultant. Neither the analyst nor the publisher is responsible for any outcome. This is purely an educational article and not a trading guideline.
