Tech View: Nifty’s long upper wick on weekly chart a sign of worry
NEW DELHI: NSE Nifty on Friday formed a small bullish candle on the daily chart, with a slightly long lower wick, suggesting the bulls were not ready to give in yet. During the day, the index came closer to its swing high of 12,041, but failed to cross it by a small margin. The level may continue to act as key resistance.
On a weekly scale, the index ended up forming a small bullish candle with a slightly longer upper shadow, which is a cause of concern, said Mazhar Mohammad of Chartviewindia.in.
“On Monday, if Nifty fails to sustain above 11,900 on a closing basis, it can trigger significant weakness, which will be confirmed with a breach of 11,829. To prevent such a situation, the index needs to break above 12,041. Traders are advised to avoid buying the dip, unless a breakout is registered,” Mohammad said.
For Friday, Nifty fell 23.10 points or 0.19 per cent to 11,922.80. During the session, the selling was seen near the level where the index had faced resistance last week.
“The index has a potential to form a Double Top pattern on the hourly chart. Another alternate suggests that Nifty can take form of an Ending Diagonal pattern, which will be a distribution pattern in this case. Both the alternate scenarios suggest that the short term outlook continues to be in favor of Read More – Source