Thursday, August 20, 2009

Head & Shoulders Pattern

I forgot to add another reason why 4350 support was crucial. A close below and we will trigger a head & shoulders pattern on the hourly charts. Have a look below. The distance of the head from the neckline is around 350 points which would mean that the implied target would be somewhere around 3950 - just about around the place where nifty found very good support just a few days after the sharp fall on budget.

Infact today we bounced off exactly from the support line. My guess is on the next test - we will break through.

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