The steep decline in Nifty has caused the index to approach the neckline of a bearish H&S pattern. The overall trend is still up, but signs of rally running into trouble is starting to now show, especially with today's big red candle.
The index has already broken below a rising trend line drawn from the March lows as well as made a lower high (11618 vs. 11794). Now, a break below 11185 would form a lower low. This, if happens, would be the first sequence of lower high and lower low in this entire uptrend that started in March, a classic sign of trend change.
Going forward, keep a close watch on 11185. If the index sustains below that, we could see short-term down move in the index in the days/weeks ahead.
