Nifty Weekly Forming Three Black Crows Candelstick pattern

Three Black Crows

As the name suggests, the three black crows candlestick formation consists of three large, consecutive, declining candles. The formation precludes lower prices, especially after a strong advance higher. The three candles should all close near the lows of the bar and ideally each bar should open within the prior sessions real body. If the first candle in a three black crows formation is a gap, then this rule is not necessary. The three black crows pattern requires the trader have patience or even wait for a countertrend rally before looking to take a short position or sell out of longs.

Nifty Weekly Chart

As per weekly charts we have 3 days of down move than we have a good up move which is folding now and if it did not matrealise we might see the effect of down wave again to a new low after breaking of 5700

Now as per candlestick chart reversal pattern cash nifty has strong resistance of 6021 of three black crows crossing this is first hurdle.

If we take fibo levels from high of 6339 to low of 5690  50% come at 6021 and 61.8% comes to 6090.If these hurdles are crossed the above theory gets invalidated.

Pivot for tomorrow trading@http://niftystockpivot.blogspot.com/

Pivot:5932

Resistance:5999,6038

Support:5894,5827