Another roller coaster ride today! If yesterday was a positive reversal bar then today it is the negative reversal bar. Nifty opened inline with yesterdays close and the global cues were great too! But since we get our Inflation figures every Friday, we moved in a tight range till 12 p.m. No major impact of the numbers as it seems the market is discounting these figures but what it is looking for is the broader implication of these figures. Any way if you take a look at the 5 minute chart we seemed to have made a very nice rounding bottom for ourselves in the first half of the day. And if you look carefully at this formation in conjunction with the last three days action (5 minute chart) then this rounding bottom was the right shoulder in our inverse H&S. This formation would have got many a people excited and lured them to take a long position in anticipation of a breakout. But as they say it’s not over till it’s over….the price never broke the neckline and reversed. It is also said when a pattern fails then the move in the opposite direction is very fast and severe. Once again 4620/30 had a role to play and we took support there for the day. On the daily the ADX is getting aggressive. As of now the high of today and the low of yesterday hold the key to the further direction of Nifty.
"The less effort, the faster and more powerful you will be."
Bruce Lee
Hmm no wonder the stocks fall with a very little effort and the fall is powerful!!!
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