Recap:
1. First of Jun, NIFTY closed at the lowest point of the day. I immediately revised my target of 5080 to 5300-50, indicating an Inverted Head and Shoulder (I-H&S).
2. Even though, it was an inside day, 2 Jun showed promising price action indicating a potential breakout of the I-H&S
3. Now that, it has closed above the neckline, paving way to 5300-50.
What next? The breakout has not shown enough power as expected and seen a softening action by the close. Hence I expect NIFTY to drop to 5060-49 maximum before it takes off again.
It may also overpower the dropping tendency and shoot up further with increased strength. Anyways, the trend “should” have a target of 5300-50 unless any unforeseen events take place.
