Index moved lower for the last 5 consecutive days. After creating a Shooting star followed by a bearish candle indicated weakness and probable reversal. Next 2 days index showed indecision thus created 2 doji candles since then Index falling with great momentum and it's already broke the Trendline and today Index closed below Role reversal support level of 4600. The next strong support is at 4535-4510 area Market could get some support from there but need to be careful of fresh buy. However, The uptrend is broken but it is still not a downtrend Index need to close below 4510-4500 to confirm the downtrend. Now you will find RSI just dropped below 30 level indicating Index falling is stretched so we might see a couple of green candles but in order to resume the uptrend Volume and TO must be high on Green candle else those green candle will create more pressure to the downward move.
N.B. Technical analysis is a study of probability, it is not a rocket science. A Technical analyst can be wrong. Please be reasonable and trade as per what you see not what other people see.
N.B. Technical analysis is a study of probability, it is not a rocket science. A Technical analyst can be wrong. Please be reasonable and trade as per what you see not what other people see.
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