A Hammer has been formed on the index recently at the previous high from where the market gave few point downside, the question is  are we going to see the same move again in the index or the index will cross the previous high and try to trade near its all time high.

A Hammer is a single reversal pattern for a short period (4-5days), This single candlestick pattern has a good success rate if we have multiple confirmation. In our scenario we don't have much confirmation to go through with the short side, we will wait for few confirmation so that we can go short.

1. The Index should be able to close below 2254

2. Breakout from RSI can be a good single

3. EMA trend to be negative would be a great signal

4. Lagging Indicator giving a proper confirmation

If all 4 confirmations are met we can expect the fall to be good.

Advice : Sell Only if at least 3 confirmation are met.

US2000

Oct 18 2021