INDIA 50 Sell below 8840 CMP 8860 Stop @ 8880 TGT 8700 – 8550 - 8500 may also test 8250
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 8840 will confirm the breakdown on closing basis and will enter in negative trend. Support trend line is the rising trend line at 8840 and once the level is crossed next down side will be the previous bottom at 8700 and sustain below the same will bring to 8550 the rising trend line as our first target and if the same support is also broken then will test the next support level at 8500 and below 8250 can not be ruled out.
