Nifty update – inverted head and shoulder in progress

Nifty.png

Abv daily chart shows inverse head and shoulder is being formed with neckline currently seen at 7800 levels.

Rebound from 100-DMA seen today indicates a short-term bottom is in place today at 7517 and prices could move towards neckline in the next few days.

However, overall bearish invalidation is seen only if prices take out falling trend line hurdle now seen at 7880 (also 200-DMA).

Given it is the holiday shortened week, traders could create positive theta positions (short strangle, short straddle)

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