Nifty Analysis on 8th June 09

On a retrospect view, Nifty gave good number of bearish signals on Friday. It gave false break out (with parabolic shaped volumes) of the ascending triangle and then started falling from there. It also made bearish wolfe wave (not perfect wolfe wave though) on top showing bearishness. It formed Candlestick doji on daily charts supporting the reversal indication.

From the opening bell nifty started sliding down with big volumes and made a channel forming flag and pole. Volumes were draining while forming the channel supporting the pattern. At 1:30PM we got channel break down with good volumes. Nifty achieved the target of this pattern in intraday. Below is the 5 min chart of nifty futures showing flag and pole pattern:

Nifty futures formed right angled broadening triangle and gave a breakdown with good volumes but the spread of the bar is not big. We got swift down moves after breaking the support trendline with increased volumes. It is giving more bearish signals also nifty formed evening star we may see some down move from here for some time. Below is the 15 min chart of nifty futures showing the right angled broadening triangle:

Below is the daily chart of nifty futures showing evening star right below the resistance line: