I am attaching the same chart as posted yesterday. As anticipated, NIFTY resisted at the white line area and between two theoretical Resistance / support levels (see horizontal lines). See circled area.
Those who read my weekly analysis might have seen the H&S pattern breakdown. The just completed rally took NIFTY above the neckline. I was a bit worried because normally it goes up to the neckline and turn back. I looked around to analyze that. Oops…. No. today's high is precisely on the neckline. Not on NIFTY, but on SENSEX. It just touched there, as it is an obligation, and started dropping down.
Now NIFTY closed flat is the outsider view. But for those who look inside can see that it has formed a very bearish pattern (See the candlestick pattern shown in box) . But theoretically it needs confirmation. Will it confirm? We will see.
I looked back an year back (Recollect the symmetry I mentioned in the weekly report). Oops the same game is being played. On 22/9/08, NIFTY HLC was a 4303-4203-4223. Today the HLC were 4303-4205-4234. You can see the exact replica. The next day in 2008 saw a flat opening and a fall. It then never looked back for the next three days, until the touch down at 3715, which is too close to my next support of 3705.
Does the bell ring for you? Now with the rally shown for the last few days, the Gun is kept on your shoulder and the trigger, ready to activate and is in "Their" hands. The bullet is precisely targeted to 3700, which is the "Bull's Eye"
