Medium Term Trend: ↓Down (Changes to up above 9800)
Shooting Star: Nifty op
Nifty made a shooting start pattern on the daily charts today ( shooting star is characterised by a long shadow and very small real body). Nifty opened around 8700 made a quick dash towards 9100 and again came down. Such patterns are usually trend defining or trend changing patterns. Whenever markets make such patters it becomes interesting to see how market trades above and low of the days high. So going forward trade above 9100 and below 8650 becomes intresting.
In Last post we had mentioned that in case nifty moves above 9050 levels, it will be a second confirmation signal that markets are probably ready to change the trend to the upside now. Even though Nifty failed to close above 9050 levels and just made a quick dash over it, it is a good enough sign. Market is continuously giving signs thats perhaps its done with downmove for now.
Last time (few days back) when Nifty had touched 9050 levels, it had dropped back to 8k levels, a similar script seems to be playing out again but I doubt if thats how it will turn out once again ( it might, but chances are against it for now).We have seen a faster retracement of fall (fall from 9050 to 8050 took 4 days and now same is fully retraced in just 2 days) and as per technicals, its a classic reversal sign. Now we need to see if market again moves back above 9k levels and take out 9800 levels as well, that will change the medium term trend to UP for good.
So will keep it short today as our views have not changed and we have got a second confirmation which suggests that trend could be changing now. Avoid short and look to enter long positions.
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