Nifty formed a bearish candle from 50% fibonacci level. A short pullback can be expected. Also, the stochastic indicator showed a bearish divergence further showing the possibility of a pullback.
Bearish engulfing pattern has been spotted at the top of a rally in heromotoco. Also, there is an immediate resistance at the same level.Both RSI and stochastic have given bearish crossovers. Stochastic lies in the overbought zone.
Following parameters suggest a short trade:
double top formation
candlestick pattern-"dark cloud cover"
stochastic in overbought zone
price hits upper bollinger band