So here is an analysis of another index 'SENSEX'. Let us understand price action of SENSEX in detail! (OPEN THE CHART FOR BETTER UNDERSTANDING)
Firstly, if you have a look at the second last (green) candle here, it is clear that this candle was not able to sustain above a major resistance line (yellow line).
Secondly, today the price shot up the major resistance line, but experienced selling pressure near its all time high (ATH) and wasn't able to sustain above the major resistance line. We can say that Sensex today gave a FAKEOUT (Fake breakout).
In addition to that, Sensex formed a bearish engulfing pattern which shows weakness ahead.
Talking about indicators, RSI is facing downward after showing weakness.
Sensex is travelling in the upper band of the Bollinger Band, and hence it is due for a correction. (I haven't applied bollinger bands here as it will mess up the chart and it would get difficult for you to understand. You can put bollinger bands yourself and check)
All this shows weakness in SENSEX, hence I would recommend being stock-specific
FOLLOW IF YOU LIKE THE ANALYSIS.
LIKE AND COMMENT WHAT YOU THINK ABOUT THIS. COMMENT IF YOU HAVE ANY DOUBT ON THIS ANALYSIS.
THANKS
Firstly, if you have a look at the second last (green) candle here, it is clear that this candle was not able to sustain above a major resistance line (yellow line).
Secondly, today the price shot up the major resistance line, but experienced selling pressure near its all time high (ATH) and wasn't able to sustain above the major resistance line. We can say that Sensex today gave a FAKEOUT (Fake breakout).
In addition to that, Sensex formed a bearish engulfing pattern which shows weakness ahead.
Talking about indicators, RSI is facing downward after showing weakness.
Sensex is travelling in the upper band of the Bollinger Band, and hence it is due for a correction. (I haven't applied bollinger bands here as it will mess up the chart and it would get difficult for you to understand. You can put bollinger bands yourself and check)
All this shows weakness in SENSEX, hence I would recommend being stock-specific
FOLLOW IF YOU LIKE THE ANALYSIS.
LIKE AND COMMENT WHAT YOU THINK ABOUT THIS. COMMENT IF YOU HAVE ANY DOUBT ON THIS ANALYSIS.
THANKS