The Index is forming a Double Top Formation on an intraday basis at the higher levels. Double Top is a reversal pattern in which we expect the security to fall once it starts trading below the neckline. Eve-Eve is one of the best performing Double Top formations. In our scenario the index has yet not made a double bottom formation, we are expecting it to form if it trades near 16278 if it doesn't cross above 16400 levels. It's an objective study so we need to wait for the index to form a double top, if it is not formed ignore.

For a proper breakout from double top the index has to close below 16278 levels once the index is able to close below the mentioned we will advise to enter the position short for the target price of 16120-16050, with a SL of 16335.

Currently the index is trading above the 200day Ema if the index is able to trade below the mentioned level the index will be trading below both the EMA which in itself is one of the best trading strategies of EMA.

The RSI below 38 is a negative sign for the index.

NASDAQ100

Dec 01 2021

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