On 1st December and 13th Dec 2022, Nifty chart had made Abdon baby pattern. This is a very much reliable pattern. It is formed when there is extreme movement due to news. Index/stocks open with huge gap and close with huge gap up opening. this pattern is always form after continuous uptrend or downtrend, After gap up opening there has to be gap down opening where index had closed, day before gap up opening. same thing happened on 1st Dec and 13th Dec 2022. Nifty had given up all gain and fell down up to 16800 from 18900. it was 10% fall. Today also same thing had happened. Nifty had given gap up opening. If tomorrow there is gap down opening then today Abdon baby pattern is confirm and nifty will be forming TOP once again.
When Nifty was at 18000 nifty was showing break out pattern and target was 18800 19000 and above. But after todays pattern we will have to think twice. If Nifty closes above todays candle stick then this pattern can be taken as false pattern. Long position can be initiated / hold. if tomorrow gap down then short position can be initiated with todays candle stick top.
Nifty was in uptrend from 16800.
When Nifty was at 18000 nifty was showing break out pattern and target was 18800 19000 and above. But after todays pattern we will have to think twice. If Nifty closes above todays candle stick then this pattern can be taken as false pattern. Long position can be initiated / hold. if tomorrow gap down then short position can be initiated with todays candle stick top.
Nifty was in uptrend from 16800.
