I have been mentioning about the breakdown possibility last week. It has now happened. Last week, I had shown you an hourly chart, to get a better view of the “Inside Story”. As the expected it happened, and is now time to shift to the daily scale chart. I have shown how the chart patterns work perfectly and it gives an advance warning of the possibilities. Now that, the Chart pattern No.3 has broken down sending the indices downwards.
With the above breakdown, NIFTY has turned bearish in the medium term. I have looked at the possibilities of its next targets. The possibility is that it “might” get a minor support around 5172 and if this is breached, it will have the potential to reach between 4975-4930.
The dates at which NIFTY made the highest and lowest levels, during the last 3 swings are marked on the figure. Interestingly this is on the first week of the month. So expect a similar occurrence in the ongoing move too.
Hope some of the readers have headed the advice, to sit on cash, which I had mentioned few weeks ago. Now that the News Break of Goldman Sachs’ fraud has come out and this news is likely to accelerate the fall of markets on Monday. One more interesting observation is that. All news breaks of this intensity comes out at the time, when the Markets, globally, is ready to correct / take off. I have back tested it and found it perfectly matching. A detailed analysis of this nature, here, will be out of place and at a later stage I will post it in my site.
The above two points namely, the technical triggers and News trigger combined could make Monday a Gap-Down day, globally.
www.ftalarms.com has already signaled to go short for all, except 2000 NN system and needless to say how well the Subscribers will be benefited.
