The Nifty is challenging the multi-year parabolic curve support line. A close below 10,525 would indicate a much deeper correction could occur. The weekly chart exhibits a possible right angled broadening pattern. These patterns typically break out of the horizontal boundary. Should the parabolic curve give way the target for the Nifty would become 8250.
This 10-month chart construction is known at a bearish continuation H&S formation. The target of this pattern at minimum is .01700 based on a log scale. Based on an arithmetic scale the target is .01000.
A massive H&S bottom is unfolding in the Corn market due delayed plantings in the major Corn growing states. Corn has already completed a very rare V-extended bottom, accompanied by a series of potential breakaway gaps.
Indian investors who are self-assured that portfolio insurance will protect against market losses should be very, very concerned. All major stock markets, including the U.S. have unsuccessfully tried stock market insurance. The result in the U.S. was the 1987 crash.
The Nifty is losing upside momentum. Resistance has proven strong. I thought maybe the ascending triangle could be completed, but it appears to be failing. Whether we have one more leg up or not, one thing I know for sure. Indian investors who think some insurance company will keep the market from going down will be sadly disappointed. Insurance against declines...
Because this pattern has formed below the ATH it must be considered for now to be a bearish continuation pattern. A completion of this pattern would also violate the long-standing parabolic advance fan line.