NIFTY is resisting and made a Descending Triangle pattern ( DT) precisely at the 62% retracement level. (Of the prior drop witnessed early this week). It has now closed below the bottom trend line of the DT.
If NIFTY does not close above the highest point of 30 Apr, it is more than likely that we will witness sharper fall next week. As I wrote last week, If 5172 is convincingly broken we might see NIFTY at 4970-60 or below.
On the weekly scale, the nearest support is seen at around 4680.
As shown at the inset A, a near shooting star formation. It is a low reliability candlestick; is definitely calls for a caution.
On the weekly chart of DOW, we can see that a clear bearish engulfing pattern (Inset B) has formed, which could trigger an avalanche in Global markets. Dow if continue its slide, will have an intermediate target of 10578 and if that is breached it can reach up to 10000-9860. That is; a near 10% drop in the near vicinity.
www.ftalarms.com has all its NIFTY signals on SHORT mode. This means, immediate and medium term view is bearish.
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