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 closes below 35450

For a proper breakout from double top the index has to close below 35450 levels once the index is able to close below the mentioned we will advise to enter the position short for the target price of 35350-35250, with a SL of 35510.

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.

DJ30

Dec 22 2021

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