Falling Wedge in Nifty (Futures) 22nd May

Continuing from yesterday's charts, Nifty Futures formed a Falling Wedge pattern. The volumes are expanding while pattern is forming, which is still OK for wedges, though draining volumes are ideal. Price gave a good break out with big volumes and spread and triggered long above the resistance line (Rs.4200) with the stop loss at the low of the day, which was at 4163, for the target of 4320. After break out, price started moving up with draining volumes, which is not a good sign and can weaken the chances of hitting the target. Some of the profits are booked at end of the day, and holding the remaining with the stop loss at 4235.

Below is the 5 min chart of Nifty Futures showing this Falling Wedge pattern.