NIFTY Should Move Up Tomorrow ( Next Trading Day)

I posted yesterday that to predict further movemnet of NIFTY its better to wait for one more day....and the way NIFTY behaved today it just proved me right that it was better to wait for 1 day...The chart which has been formed now tell a better story....An inverted candle stick is formed in NIFTY chart....

Now before going further into this lemme explain what is inverted hammer

Inverted Hammer

Generally it is found in a downtrend . An inverted candle stick pattern is a "warning" of a potential reversal upward. It is important to note that the Inverted pattern is a warning of potential price change, not a signal, in and of itself, to buy.


Inverted hammer looks like this:

Here its very important to note that the wick should be atleast twice the body of the candle to make this pattern effective.

To know more about inverted hammer pattern click --> INVERTED HAMMER

NIFTY Chart

   Base Chart Source: http://www.icharts.in/charts.html

As we can see that NIFTY fell for 4 continous days...If we treat this as downtrend we can see that at the end of this downtrend there is fromation of an Inverted Hammer candle stick. This gives warning that trend reversal is about to happen and this makes me to blieve that NIFTY shoud move up tomorrow ( Next Trading Day)......

Well I have also looked at other indicators to double confirm this. If we look at the RSI it cans be seen that RSI has touched the 50 mark line and it has started moving up (indicated by gree arrow)

Again slow stochatic has already cut the 20 mark line and it can only move up from here

As for MACD its very close to 50 line...so it indicates that it will bounce back and move up from here

Thus all incators and chart pattern hints that NIFTY will move up tomorrow.....and in next couple of days...

Although the volume on formation of Inverted Hammer was not higher than usual ( or vey high) i still believe that NIFTY shoud move up from current levels....