CREALTH NIFTY VIEW
Nifty closed at 10681 at all time high which has been the trend in recent times. Nifty had formed a descending channel pattern and had given a breakout of it on the day of the Gujarat election results as it closed above 10375. The target of the channel breakout was 10700 which was almost achieved last day. Hence now we expect fresh rally only above 10700 as the pattern target will end as a strong resistance.
Gyan Word – Descending Channel Pattern
A descending channel or downtrend is the price action contained between two downward sloping parallel lines. Lower pivot highs and lower pivot lows are a bearish signal. In a downtrend, a trade might be entered at the trendline and exited at the channel line. A lower low below a descending channel can signal continuation. A higher high above the low of an ascending channel can signal trend change.