Certainly it was Well planned and engineered 141 Nifty points 10 minutes fall for creating depressed sentiments,small traders and investors were psychologically compelled to sell their trading positions and investments.
All the technical analysts filters such break outs through following confirmations;-
1- 3 days sustaining beyond.
2- 3% moves moves from break out levels.
3- Increase in volume
4- Forceful break out.
5- Closing beyond.
Market gave all the above confirmations except 3 days sustaining beyond on 20-06-2011 therefore following line was told in all the 3 following topics:-
"only last technical formality of 3 days sustaining below is left"
1- 18 Months Rising Trend Line Broken Down
2- 34 Sessions Trading Range(5329-5604) Broken Down
3- Head & Shoulders Pattern in 4 months EOD Chart
As soon as intraday charts started to show bullish signals then we immediately told for whipsaw possibility on 22-06-2011 and told following lines in Nifty-Micro Analysis of 3 days Intra Day Chart(Jun 20 to Jun 22,2011):-
1- Nifty slipped 141 points in 10 minutes and crucial supports broken down on 20-06-2011 after 'DTAA renegotiation' news. 3 crucial patterns(H & S,18 Months Rising Trend Line and 34 Sessions Trading Range) broken down in this sharp fall. Last technical formality of 3 days sustaining below crucial levels have also been completed on 22-06-2011 but required selling is not seen and lower levels buying was also seen in these 3 days within (5250-5320).
2- 3 crucial patterns break down was news(DTAA renegotiation) based therefore whipsaw possiblity will also be considered after lower levels buying in these 3 days.