Markets finally form "lower high lower low" but this was after 4 days of "higher high higher low" pattern.
Now to understand what is happening one should focus on the "tails" formed during this rally... each such event is indicative of selling so you have to be cautious and not jump into long trades.
At a higher level, I am expecting a triangle formation with each leg tracing out an ABC pattern. For the current leg, I have drawn expected pattern and c leg (of the bigger C shown in thick blue) is expected to open down.
EOD charts:
Intraday charts: break of 8290 spot was a short trade with cover on close above 8255 spot. The next long trade was a wild one.
Now to understand what is happening one should focus on the "tails" formed during this rally... each such event is indicative of selling so you have to be cautious and not jump into long trades.
At a higher level, I am expecting a triangle formation with each leg tracing out an ABC pattern. For the current leg, I have drawn expected pattern and c leg (of the bigger C shown in thick blue) is expected to open down.
EOD charts:
Intraday charts: break of 8290 spot was a short trade with cover on close above 8255 spot. The next long trade was a wild one.
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