Four simple TA tools and pure actions to understand what happened today. Nifty opened with a huge gap-up, rose to touch a falling 20EMA, and by the mid-day gave up all the gains. "Gap-up filled". In the second half of the day, it breached the 10600 resistance level, making the yesterday's breakout as false breakout. Longs got stuck. Long unwinding and panic selling started, thus pushing the prices back under the blue falling trend-line.
In all, a perfect bearish engulfing pattern emerged with high volume. Moreover, RSI level 40 acted as resistance.
In all, a perfect bearish engulfing pattern emerged with high volume. Moreover, RSI level 40 acted as resistance.