Nifty Futures - a possible reversal from uptrend

26.12.22 The Nifty Futures (NF) has been trending up in the monthly time frame after it made an excess low at 15202 in June 22. It broke out above the balance last month in November. In December, it opened above the November high but started falling from 2nd December itself. Throughout this month, it fell steadily and last Friday it penetrated below the November low of 18008. There are now 4 trading days to go in the month. Should it close below 18008, it will form a Bearish Engulfing pattern. The Bearish Engulfing pattern is a major reversal pattern. Its formation would mean that the uptrend has been damaged and a major reversal has happened in the monthly time frame. At the extreme, the market can probably go down to 15500 - the destination trade - being the other end of the balance, from where the uptrend started.