Nifty - Island reversal pattern - Bulls on thin ice!

With today's gap down, Nifty is about to make island reversal top pattern. If Nifty doesn't close above 9120 in a couple of days then below 8968, bulls will run for the cover. Given the fall in US & European markets with topping out pattern and consensus of our market participants that nifty will go to 9500-10000 is dangerous for the bulls. Market will go there when no one is expecting it to go. Cut long positions and take some shorts with SL 9150.

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Nifty held onto the upward trendline, closing above 9120, watch out for retest of previous highs i.e. 9220.

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In the last couple of days, market has deceived many participants, people were waiting for nifty to fill the gap till 8975 and looking to go long at around 8975-9000 levels but nifty reversed from 9020 (there is nothing at this level apart from trendline support) without giving any significant sign of reversal. This is what market does to you.