Re: Nifty
I think NF made high of 5309.90 on 6th Jan & today also same high so we have double top now. Unless 5310 is broken good to be on short side now I guess.
Cheers !!!
Alok Tewari
Dear Alok,
Nifty Futures Made high of 5303.25 on 06-Jan-2010 and today it made high 5309.90 which is a higher high. As per my knowledge, Double top is where the second high is lower then the first high. So, I doubt if it is a double top or not.....
Seniors/Experts, please throw some light on this point
Double Top Formation Components :
1. First High: Bulls push prices upwards making new highs; however, these new highs are short lived and prices retreat.
2. Second High: Prices don't retreat for long because bulls make another run, making a similar high. Nevertheless, this is bearish, because bulls were unable to push prices higher; bears held their ground at the previous high level. The bears push prices back to support (Confirmation line); this is a pivotal moment - either bulls will make another push higher or bears will take control and push prices even lower, more than likely taking over for good.
Image For Reference of a Sample Double Top :