Bearish H&S pattern on #NIfty along with GMMA band conversions -

There is a very vulnerable pattern available in technical dictionary, is Bearish H&S pattern. this pattern normally form slight before a start of bear market. however, visibility of this pattern doesn't conformation of its surpass or any decisive future movement, but more of the time, most of technical analyst are well and advance aware about this pattern, because everyone scared of bear market ( I am exceptional ).

Currently, this pattern is indicating its strong presence on Indian stock market daily chart. it has completed left shoulder with head and a clear neckline at 5350 level on nifty. the significant noticeable is, the GMMA average conversion during the formation of its head. The third and final stage of formation right shoulder is under progress and the end current pull back rally will establish at level of 5600-5620.

If i may, retest failure at neckline & pattern conformed its strong presence, then it will be disaster movement on the street. we can consider the fall upto 600 point on nifty indices from neckline support.

If we check the past, on previous time when this indices formed the same bearish H&S in mid of Aug08, the nifty lead the downside rally of 2000 point & hit the lower circuit breaker within one month of retesting neckline failure.

Hold your breath, we cannot expect the same disaster all the time rather every time. but we are giving a eagle eyes to its retest on neckline support and the rest depends on sustaining/failure.