NIFTY Weekend update
- First chart the Daily time frame shows price falling back into the channel. Such false spikes mostly results in fast fall on the opposite direction. For Bulls price must keep itself inside this pattern. Breaking the support line of the pattern may result in bigger weakness.
- Nifty Month shows the crucial number at 10500. If the Month candle closes near or below this number then its a Bearish engulfing in the Highest time frame. So bulls need to avoid this scenario as well.
- Last chart shows the 100 SMA. Since this reversal is strong its quite normal for price to reverse to such mean lines. Now for the up trend to be intact this line must be held once it gets tested.
- S&P 500 Weekend update
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How could you said that it was a false breakout? Monthly chart give a real breakout, weekly also give real breakout then daily just in corrective
ReplyDeletePrithvi Your right about the Time frames. But i was talking about the channel shown in first chart. When price break above a channel It should not fall back into that pattern. If it falls back into the pattern without doing a bigger move Its called as false breakout.
DeleteNormal target for that breakout comes around 1000 points from 10800 levels Which it did not achieve. This is only regarding the pattern shown in first chart.
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