Bearish Head and Shoulders Pattern formations on Intraday Charts
Technical Analysis,Research & Weekly Outlook
Technical Analysis,Research & Weekly Outlook
(Sep 30 to Oct 04,2013
Following topic was posted with detailed analysis on 22-09-2013:-
Followng conclusive lines were told in above topic:-
Nifty will prepare for next trend between 5779-6140 in the coming week/weeks and finally sustaining beyond this range should be watched for next trend confirmations.
As was told same happened in previous week and Nifty traded whole ween between 5811-5989 as well as prepared for next trend.
Nifty-Intra Day Chart (Sep 10 to Sep 27,2013):-
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1- Bearish Head and Shoulders Pattern formations in last 14 sessions
2- Neckline at 5810
Conclusions from 14 Sessions intra day chart analysis
Gap up strong opening on 10-09-2013 but Bearish Head and Shoulders Pattern formations with Neckline at 5810 in last 14 sessions trading between 5810-6142. Now next big trend decider is Neckline(5810) and its breaking down will mean sharp down.
Nifty-EOD Chart (27-Sep-2013):-
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1- Bottom formation at 5118.85 on 28-08-2013 and Wave-1 beginning
2- Wave-1(5580.95 on 03-09-2013)
3- Wave-2(5318.90 on 04-09-2013)
4- Wave-3(5957.25 on 16-09-2013)
5- Wave-4(5798.15 on 16-09-2013)
6- Wave-5(6142.50 on 19-09-2013)
7- Correction continuation.
8- 200 Day SMA at 5841
8- 200 Day EMA at 5751
Conclusions from EOD chart analysis
As correction beginning after 5 waves completion therefore correction of whole rally between 5118.85-6142.50 is being seen and its continuation is expected in the coming week.
Conclusions (After Putting All Indicators Together)
Correction continuation with Bearish Head and Shoulders Pattern formations at the top of rally and it means high possibility of deeper correction,its confirmation will be after valid break down of Neckline at 5810. Certainly good selling at high levels in previous sessions and once sustaining below 5810 will mean sharp down moves.
Short Term Trend is down,Intermediate Term Trend will be will be down below 5810 and Long Term Trend will be down after sustaining below 200 Day EMA(5751). Although next gap support(5689-5738) is just below 200 Day EMA(5751) but good selling at higher levels therefore its testing is possible in the coming week and trend reversal will be considered after sustaining below 5689.
Good selling at higher levels in previous week and Bearish Head and Shoulders Pattern formations on intraday charts in last 14 sessions also therefore high possibility of slipping below 5810 as well as deeper correction.