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Showing posts from August, 2018

Nifty: Completion of AB=CD is hinting a bearish reversal

NIFTY is currently trading at 11282. A bearish AB=CD pattern has emerged on EOD chart of NIFTY index. Now this index is showing sign of reversal from 11390.55. Bullish attempt from low of 10419.80 to 11390.55 is equal to bullish move from low of 10105.40 to high 10929.20. Pattern has completed leg CD which is usually 100% extension of leg AB. Completion of leg CD marks a bearish reversal for this pattern. On price action front nifty has formed a spinning top near 100% extension of leg AB which increases the probability of this bearish reversal. Stability below 11400 will help bears to gain control and a primary attempt towards 11100-10930 zones will remain in focus. Further stability below 10900 will lead to further decline and any recovery above 11400 will invalidate our bearish expectations.