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 completed a double bottom formation. Trade on the breakdown.

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 768 levels once the index is able to close below the mentioned we will advise to enter the position short for the target price of 760-740, with a SL of 772.

Currently the index is trading below the EMA which in itself is one of the best trading strategies of EMA.

The RSI below 40 is a negative sign for the index, if the index trades below 32 we will get another confirmation on the sell side.

NETH25

KUNAL KAMBLE

Dec 20 2021