Hello Hello!
How do we interprete these 3 candles made by NIITTECH? 1st long bulling white candle, 2nd not so long but good sized black candle, 3rd again not so long but good sized black candle...
Per Steve Nison, many time we shud or we can combine 2 candles against first one to reach to particular pattern.... so on a similar note, can we say NIITTECH making bearish engulfing or dark cloud cover???
Kindly give your opinion from your observation on indian market for this type of patterns...
Apurv
Look at the chart below. Your chart had too many lines, so read carefully what I have written on your chart.
Look where I have marked previous resistance. It is precisely at a place where bearish engulfing was formed and this now becomes our primary support area (Resistance turning into support).
Also look at the base of a long white candle. Usually mid level and low level of a long white candle becomes important support. Hence we have two zones very close to each other which form good support levels. Also if you look below the long white candle support zone, near levels of 183, NIIT reversed ni mid of june. Hence this intermediate swing top is also a support. So you have three support zones around 190, 186 and 183. If stock goes below these, its time to exit.
These candles do not represent anything as of now. First candle is not a piercing pattern nor is it engulfing one. However, they do represent new resistance zone at 200. Hence anyone holding this stock should only add further positions once the stock is above 200 levels.
Always always and always see where is your candle pattern emerging. Ask yourself, where is the previous support. In this case strong support zone is in 180-190 zone. Stock is in a good bullish wave structure. Even if support breaks, we need to review our view again.
Tc