The Index is trading at its all time high. The index has made a Hammer Pattern on a 15min time frame. Hammer at Top is a reversal Pattern, when a hammer is formed we can expect the security to correct. It's not a compulsion but usually it's a reversal pattern. We can expect the security to correct if it closes below the pattern.
If the Index is not able to close below the hammer in the next 45 min there is no point of entering the short side.

If the index closes below the hammer we can expect the index to correct till 6790 levels. Overall the market is positive. We are going to go against the trend, it's very necessary to keep a SL nearby.

MACD crossover can be helpful, RSI is trading high near 80 which is high need to be cautious.

Any opportunity in the next 15-30 min would be an opportunity. If the index does not close below, hammer ignore.

Advice : Sell if the above condition are followed.

Opportunity if close below hammer

Aug 06 2021

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