This is an example of perfect opposite hammer, one can take advantage of this by going long and only long.
If world market did not support it then also our low can be supported at 5375. Which is low of the hammer.
Today's target 5445.
It does not confirm bullish trend, however opposite hammer is considered one of the strongest reversal sign, please look at the negative divergence...!!
- Nifty managed to come back above the 5 day low ema and closed above it.
- But nifty for the second day has closed below 20 DAY SMA. And the more it trades below its daily 20 SMA the more bearish it gets.
- The stochastic indicator has been showing negative divergence for quite sometime without any major correction. So If the price falls below 5350 the negative divergence will take effect.