NIFTY Update

Last week i warned all about a bearish head and shoulder pattern made by Nifty on weekly charts.

http://marketview123.blogspot.in/2015/08/nifty-nifty-weekly-charts-if-my-chart.html

 At that time that was a tentative break down as weekly close was above the neck line, but this week nifty confirmed the pattern decisively. While doing that Nifty also broke the previous swing low of 7667.25 and made a new low of 7655.05. Now next major support is 7540.1(low of 8-aug-2014). On RSI charts Nifty is also near to oversold position and RSI is 31.6. On monday if Nifty opens gap down RSI will be below 30 and that time will be a good opportunity to buy for short term. A bounce towards 7800-7900 is looking on the cards. We can go the pattern targets of 6800 made by Nifty on weekly charts but before that a bounce is looking on the cusp. If Nifty can survive next week supports of 7591( 38.2 %  retracement from total upmove form Aug-2013 lows of 5118.85  to the highs of  March-2015 of   9119) we can expect a good bounce.

Disclosure: I am not a technical analyst. I analyze charts for my own trading purposes and do not recommend anyone to buy/sell.