Today NSE:NIFTY formed a spinning top and closed below 200 Moving Average. Previous data suggest that at this price level, NIFTY will see a selling pressure tomorrow. Only to find support at 11160 - 11120. Look for a strong reversal candlestick pattern at these levels and also price crossing above 200 moving average to indicate a short change in trend. Next resistance will be at 11700.
Hopefully selling pressure from the market will reduce by Friday.
P.S: Swing traders to avoid buying any positions or averaging down. Long term traders can start buying at the support level if it respects the level and bounces back.
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As mentioned earlier, NIFTY50 did fall and broke the resistance. we did not see any reversal pattern still indicating selling pressure till august 1st week