Upen1973

Stochastic shows a different picture...

Short
NSE:NIFTY   Nifty 50 Index
The Stochastic (which is marked with red line) and the price highs (which also are marked with red line) in such formation often gives an interesting outcome. Recent price high is much lower than the previous high but the Stochastic highs depict different picture. For the last price high it shows a lower high but the recent price lower high it shows a much higher condition (highly overbought). Usually this type of formation in Stochastic predicts a steep and sharp fall in the price. The same opposite condition indicates exactly an opposite outcome, i.e., price shoots up fast. So from the current scenario of Stochastic it might be assumed that Nifty is going to fall quite sharply in the upcoming sessions. At this time sub-14000 is quite possible.
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