A Double Bottom is seen in the Index at the intraday low and a breakout was seen before closing; after breakout retracement was seen in the index and in the last 15 min buyers came again and led to close the last 15 min in positive. Previously we anticipated a Buy call on the index for 100-200 points and we have gained that and we have seen the index falling from that point, we anticipated a buy call which was riske. In the current scenario we have found a better confirmation than the previous one where the risk reward is more favourable.

We have seen that the index is trying to form a bottom at a lower level which has led to a double bottom formation. A double Bottom formation is a reversal pattern. We have seen ADAM and EVE formation. The failure rate is less, throwbacks are common in the pattern.

If the index closes above 29170 on an intraday basis we can enter a long position, the 50 day EMA is trending positive and the index has been trading above the 50 day EMA.

The DMI is indicating positiveness; DMI+ is trading above the DMI- and the ADX is trading above both the DMI which shows strength in the move.

JP225USD

Oct 03 2021

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