The Index is trading near its high, on an intraday basis in the second half selling pressure was seen on the index which led in a range movement at the end. In this range bound movementem we saw a engulfing pattern which is a reversal pattern. In this case engulfing was seen between the movementem not near the support or the low so it indicates flat movementem.

As it is a rectangle pattern forming we will wait for the breakout, the rectangle is a continuous as well as a reversal pattern it depends on which site the breakout will be.

If the breakout is seen on the downside it will be a continuous pattern and if the breakout is seen on the upside reversal pattern.

If the breakout is on the upside make sure that the index is above the EMA's, if not ignore the move vise versa for downside.

The Rsi is trading in a range if the breakout is on the upside and the breakout of the index is on the upside will get a confirmation and vise versa for the downside.

Opportunity

Aug 31 2021

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