NIFTY Auto Index - Head n Shoulder pattern
Nifty Auto sector has been in up trend for few months now.
We can see a head and shoulder pattern in making on the Nifty Auto Index which is trend reversal pattern. Looks like it is time to be cautious on Auto stocks.
Levels: 17650 crucial support for Auto Index. An hourly close below this level can be considered to be breakdown.
One can look for long only if Nifty Auto sustains above 17950 levels.
Note: If this is a new downtrend in Auto index, then this may have impact on Nifty as well.
We can see a head and shoulder pattern in making on the Nifty Auto Index which is trend reversal pattern. Looks like it is time to be cautious on Auto stocks.
Levels: 17650 crucial support for Auto Index. An hourly close below this level can be considered to be breakdown.
One can look for long only if Nifty Auto sustains above 17950 levels.
Note: If this is a new downtrend in Auto index, then this may have impact on Nifty as well.
Comment:
Short Opportunity: M&M had earlier given breakout above 1640 levels, tried to sustain for some time but now reversing and trading below 1640 levels which is not a good sign for longs.