Nifty 50 IndexLong
Nifty Forms an Inverse Head and Shoulder Pattern
Nifty 50 index has formed an inverse head and shoulder pattern. Its not a perfect pattern, but it meets most of the criteria to be considered an inverse head and shoulder, the second shoulder is a little shorter.
But the Stochastic RSI indicator suggests, that the Nifty is in oversold zone on the daily charts, this could mean a downfall in the short term. Such a downfall would also result in a more perfect inverse head and shoulder being formed and then the final reversal.
So what is likely to happen in the next few days to nifty? A Downfall or sideways movement for 3-4 day period, followed by a breakout and uptrend.
Things to Note - December is a month where FIIs usually sell. But since they have already sold so much, the likely hood of more selling is less. So it also confirms with the pattern formation that Nifty is likely to end up in Green in December.
But the Stochastic RSI indicator suggests, that the Nifty is in oversold zone on the daily charts, this could mean a downfall in the short term. Such a downfall would also result in a more perfect inverse head and shoulder being formed and then the final reversal.
So what is likely to happen in the next few days to nifty? A Downfall or sideways movement for 3-4 day period, followed by a breakout and uptrend.
Things to Note - December is a month where FIIs usually sell. But since they have already sold so much, the likely hood of more selling is less. So it also confirms with the pattern formation that Nifty is likely to end up in Green in December.
Note
Correction: In 2nd Para, the indicator suggests.. Nifty is overbought.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.