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).