Nifty plunged from 5310 to 4756..in a matter of few days,after i warned of a MAJOR TOP...
a bounce back from extreme short term oversold zone was inevitable.
we have seen, three sharp falls, since budget..after all such efforts from the bears, the markets recovered very smartly..to reach new highs.
the last one is fourth one.more importantly ,this one came only a month before the full year budget and seemingly improved economy.
looking at charts, and looking the way how important trendlines got broken ,this time...i feel it will be very difficult for bulls this time.
since nifty has fallen from 5310---4756 today..a recovery was unevitable...thats what we have seen today.i think, buy wednesday,the picture will be very much clear,weather the rally started today, is infact a lower top formation or not.
the last one is fourth one.more importantly ,this one came only a month before the full year budget and seemingly improved economy.
looking at charts, and looking the way how important trendlines got broken ,this time...i feel it will be very difficult for bulls this time.
since nifty has fallen from 5310---4756 today..a recovery was unevitable...thats what we have seen today.i think, buy wednesday,the picture will be very much clear,weather the rally started today, is infact a lower top formation or not.
AFTER previous two major sell-offs, clearly visible on weekly chart presented over here..one can identify..weekly candle reversal pattern.one was piercing line and the other was a hammer
but importantly this time around ,even after a smart recovery from lows on the last day of the week, theres no important candle pattern.
SO , for any bullish ness now onwards...we need a candle reversal pattern on weekly basis.
ONE can see, how two major indicators namely ,rsi --roc ,have warned us against IMMEDIATE bullishness. rsi was signalling strong negative divergance and roc made a topping pattern.
remeber that the roc chart was presented here..few weeks back..way before the actual confirmation of the H&S PATTERN ON IT.
ANOTHER major concern for bulls as per me is the bearish candle reversal patterns indices and most major stocks on MONTHLY charts.
which means, that any rise in the month of february, should now be considered as selling oppprtunity, for lower targets near 4536 and below.
more on sectorial study...later
