However Bank Nifty has shown first sign of reversal forming a typical sandwich pattern. Sandwich pattern in itself is not enough for confirmation of a trend reversal but the next bar is important to watch.
Points supporting Trend Reversal:
1. Formation of a sandwich pattern.
2. Failure to break previous support 10919.
3. Failure to break support of 10906 for 3 consecutive days.
4. Failure to break weekly support of 10950.
5. 20-month SMA support near 10970.
6. Highest weekly volume after November 2010 indicating buying by strong hands.
Confirmation:
Trend reversal will only be confirmed after break of hourly resistance near 11242. Trades may be initiated above 11260 for targets of 11840, 12820.
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