Bank Nifty – Head & Shoulders Breakdown AnalysisPattern: Head & Shoulders
Status: Neckline breakdown confirmed
Elliott Wave Position: End of Wave 5, beginning corrective wave.
Indicators: Bearish RSI + MACD divergence
Indicators Supporting the Breakdown
🟣 RSI Divergence
Clear bearish divergence between price (higher highs) and RSI (lower highs).
RSI now breaking mid-level (50), confirming shift from bullish → neutral → bearish momentum.
🔵 MACD Structure
MACD shows multiple negative divergences during right shoulder formation.
Bearish crossover already done.
Histogram contracting further indicates strengthening downside momentum.
Expected corrective move → ABC decline to at least Wave 4 price territory.
Wave 4 region sits around 57,500 – 58,000, matching H&S target
Trend Bias: Short-term bearish until retest of neckline or completion of A-wave drop.
