It can be seen from the above chart that nifty after breaking the trend line from june 09 onwards in january 2010 it has once again tested the trend line indicated by top arrow and then corrected voilently. Currently also in this fall nifty has broken the trend line drawn from june 09 onwards and not moving up, it appears that it might again go and test the trend line or it would just move above it and then collapse. This would form a perfect technical pattern. if nifty moves above the trend line and then again move below it would form a perfect opportunity to short with stop loss at the recent high, in which case it would provide a minimum loss and maximum profit opportunity. so keep close watch on nifty once it nears the trend line.

M.Sri Mahidar
Trend is Friend.