Friday, October 4, 2013

BANKNIFTY DAILY CHART


  1. There was sharp decline after Bearish Engulfing made on 20-05-13.
  2. Decline halt on 20-06-13 for few weeks, and started trading in a range.
  3. Consolidation takes place  in the middle of the downtrend.
  4. Consolidation  completes between 3- 4 weeks.
  5. The Second Rally in the  Consolidation phase , fails to touch the previous high  & reaction sets in.
  6. On 16-07-13, the long Black candle sifts through the lower trend line and closed beyond it, furthermore next day,  a long black candle is formed which take the move down by more than 2% , which confirms the true breakdown from the  Flag  pattern.
  7. A  Pull back came in for 3-4 days after break down from the lower parallel flag line
  8. A shooting star pattern develops at the last day of pullback, & thus next day a gap down opening took the move further in the continued downtrend.

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