Yesterday was an inside day (candlestick pattern) and therefore it is a sort of gentle warning to bulls looking to initiate fresh longs.
The pattern is not a reversal pattern by itself, but given the fact that the index is rallying near record highs and stops are well below the current levels a bout of profit taking is likely. Thus, the index could retreat to 7K-6950 levels.
On a larger scheme of thing, there is little reason to fear so long as we are trading below 71K handle.
The pattern is not a reversal pattern by itself, but given the fact that the index is rallying near record highs and stops are well below the current levels a bout of profit taking is likely. Thus, the index could retreat to 7K-6950 levels.
On a larger scheme of thing, there is little reason to fear so long as we are trading below 71K handle.
