Candle formation for Nifty on 13-07-2012 – Giant red candle
with large real body, no upper shadow and a small lower shadow. This indicates
a strong downward trend. However we need to keep in mind that market took very
nice support as shown in the daily candle chart.
Heikin Ashi candles on hourly chart – for the entire day all
the 7 candles where red in color. As noted yesterday
the market took a plunge forming a very large RED candle in the morning hours.
Towards the evening there appeared a candle with very small real body and large
upper & lower shadow. However the next candle is still red in color but again
contains very small real body. So we still need confirmation today for the
reversal possibility. If the morning hourly candle turns out to be a hollow one
with good real body then there will be a short term reversal possibility as per
Heikin Ashi candle chart.
Nifty Hekin Ashi daily candle chart:
Nifty Hekin Ashi hourly candle chart:
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