Trading Range Intact

A three day range was expected to breakout after the Lok Sabha Vote. See earlier post

Markets being what they are, the eventual outcome of a  trading pattern can never be predicted with any certainty. We work with the probability that the eventual outcome from a trading range will be a breakout or breakdown.

This week, the Nifty did not oblige. The trading range appears to be intact, with failed breakouts as well as failed breakdowns.
More worrying for the bulls is the absence of follow through after the big 100 point intra day rally that occurred on Thursday. This is a warning signal. It is not a sell signal, but traders should avoid long positions till new patterns merge.