Are we close to a short term top for Nifty ?
Updated
NIFTYWhy I am bearish , and what I am waiting for to go short -
1. The 2 period RSI , and its 4 period EMA are very close to 100. ( You can do the same with a 3 period RSI. You'll get similar results).
2. The market has been rising non-stop for the last 7 trading days. Even 5 days of unabated rise is very rare.
3. We are hitting a resistance.
4. Drill the chart down to 5 minutes, and you will see that for the first time in the last 7 days, there has been a push down. The index recovered, but thats still a sign of weakness.
5. Again, at the 5 minute level, I notice a double top being formed. Once its fully formed, and upward momentum slows, its ripe to be shorted. Sharp down reactions are normal nowadays. Thats why I am looking for a signal to short in the 5 min timeframe, now that I know I want to go short. Waiting for it on a Daily chart , may find you late in getting some action. But , a doji tomorrow will be great.
Note
There is the doji.
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