Price Movements in Nifty shows a possible development of cup and handle formation. The Cup has formed and development of the handle still awaits. The Cup with Handle is a bullish continuation pattern that marks a consolidation period followed by a breakout. we observe a high at the right end of the candle. After the high forms on the right side of the cup, there has to be a pullback that forms the handle. The handle resembles a pennant that slopes downward. The handle represents the final consolidation/pullback before the big breakout and can retrace up to 1/3 of the cup's advance, but usually not more. The smaller the retracement is, the more bullish the formation and significant the breakout. MACD and ADX movements also shows a negative divergence.
So somehow I have a gut feeling that the market would be trending down in the coming weeks to reflect the formation of the depth of the handle.
