Nifty forms Head & Shoulder Pattern: Breakdown confirmed

# The Nifty index made a fresh 2 year low to close at 4651 levels on Friday, 16th Dec 2011.

# The breakdown happened on huge volumes and strong momentum on the downside.

# The head and shoulder pattern, as visible in the chart below, confirms the breakdown.

# The index is significantly below the short term (20 DMA) and long term (200 DMA) moving averages.

# The resistance level for the index has shifted towards 4800 - 4850 levels (the neck region).