Nifty is forming a very bearish pattern and it is clearly indicating that in coming weeks we might be in for a very bearish move. Nifty seems to be forming an expanding triangle and we seems to have completed the wave-4 and we have just started the wave-5, and generally it is the one which is most violent and also most destructive. Now we have to see the volumes and the volumes would be very high during the formation of the move and it would be most destructive of all the waves both time wise and also price wise. if the formation is correct then the fifth wave would all the way go and move beyond the 1-3 trend line i a big way so we can easily see it below 7000 levels and towards the 200 week EMA which happens to be at 6700 levels. Will it go there the pattern implication are pointing towards that. This pattern nearly similar to the pattern formed in Jan to Sep 2008, and we know the effect of the same. This would i would try to explain in the coming week. So the pattern is indicating that the bears are going to rule the market in coming weeks or months.

Mahiidar M

Enjoying Life

Trend is Friend.