On daily charts we have seen that nifty future has formed a double top pattern (A kind of short term reversal pattern), we are of view that nifty future is more likely to see a reversal in trend. If you go through recent fundamental changes, there are also signalling the change in short term trend, like inflation has gone below 7% now, IIP data has come above 6% and is much in line to estimates by experts. On weekly charts we have seen a long head doji pattern being formed also hinting possibility of a trend reversal. Mechanical indicator CCI is showing slow down in momentum and forming a divergence here, so there are many factors both technical and fundamentals are favouring a trend reversal. Let us see when this reversal starts, still global markets will impact nifty future in short term. If you check back those historical charts you will notice about 98% time double top pattern served as an reversal pattern and trend changed.
About Bhaveek PatelBhaveek Patel is one of the most successful traders, technical analyst, and investor, his areas of interest include stock market, forex, and gold trading. Apart from this, he is often seen in the golf course. He is having more than 10 years of experience in trading, had placed his first order on 19 June 2006 with IndiaInfoline.
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