Reversal pattern in Nifty Futures 30 min chart
Today - 27th October, Nifty 29 Oct Futures (NF) formed a weak Open=High pattern, corrected and then rallied throughout the day to close near the top. It however, faced exhaustion near the top and formed an 'Advance block' pattern in the last one and a half hours of trade - near the day's high.
The following is my thought process and analysis based on the 30 min chart of NF.
The formation of an advance block pattern means that the rally is running into trouble and might stall further up.
It is to be noted that the NF price moved above the 50 and 200 period SMAs also during the final hours of the day.
It is also to be noted that the 50 period SMA is crossing the 200 period SMA from above - also signifying bearishness or an impending change in trend.
The candle stick pattern taken with the price action in the past few days - when NF made a Recovery High and sold off from the top as well as potential moving average cross over,
the conclusion can be drawn that although this is not the market top, the top is nearby and can happen soon.
The following is my thought process and analysis based on the 30 min chart of NF.
The formation of an advance block pattern means that the rally is running into trouble and might stall further up.
It is to be noted that the NF price moved above the 50 and 200 period SMAs also during the final hours of the day.
It is also to be noted that the 50 period SMA is crossing the 200 period SMA from above - also signifying bearishness or an impending change in trend.
The candle stick pattern taken with the price action in the past few days - when NF made a Recovery High and sold off from the top as well as potential moving average cross over,
the conclusion can be drawn that although this is not the market top, the top is nearby and can happen soon.
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