Nifty has broken out of Inverted H&S pattern plus consolidation in between 11550-11780 (11856). RSI on 15,30,60 minutes chart has entered into oversold territory. Normally, in such steep fall, we do not see any recovery as momentum of the fall has suddenly increased. So any attempt by buyer gets blocked by sellers who have got upper hand. For tomorrow, trader should look for level of 11520 and 11550 to initiate fresh short for target of 11420 and 11370 (38.2% retracement of 10580 to 11856 rally and also 161.8% of 11550- 11856 rally) with stop loss placed above 11580 and on safer side above 11600. Target of Head & shoulder pattern is 11270 but there is a minor support at 11315 which should be treated as final target for the time being. Investor should totally avoid bottom fishing.
Order cancelled:
trade didn't initiate