Market Status: Extremely Bearish and long term trend broken down.
The observations: The pattern breakout, which took NIFTY to 6339, failed to achieve the theoretical target and abruptly reversed. It has now closed below the Top trend line of the pattern. This premature re-entry is normally associated with fierce selling.
Apart from Pattern breakdown, the critical ling term support 5840 (according to me), is broken down last week. This means if NIFTY maintains below 5840 for one more week, the breakdown of the Long term trend is considered to be convincingly broken down.
