INDIA 50 Sell below 7550
CMP 7580 Stop @ 7650 TGT 7300 – 7050 - 6650
Diamond top formation
A diamond top
formation is a pattern in technical analysis that is used to identify a
possible end to an uptrend. This pattern is identified by drawing a line from
the peak price to an existing lower high and another line from the highest low
price down to the lower low. It ultimately forms a descending channel, but the
lines drawn from the last uptrend to the peak and the latest lower low to the
lower high takes the shape of a diamond.
NIFTY is forming similar to the Diamond To formation where
if sustain trading below 7555 will confirm the breakdown on closing basis and
will enter in negative trend. Support trend line is the rising trend line at
7555 and once the level is crossed next
down side will be the previous bottom at 7215 and sustain below the same will
bring to 7100 the rising trend line as our first target and if the same support
is also broken then will test the next support level at 6650.
