NIFTY - A Possible Head & Shoulders Pattern

NIFTY seems to be forming a head and shoulder type of distribution pattern at range top around 12000 levels. Considering the strong positive sentiments dominating the market it may not be wise to try a short trade. On the contrary 12000 expected to act as a strong psychological barrier, over leveraged long positions at top ; any disappointment in the monthly high frequency indicators like auto sales, inflation, IIP, global cue can act as trigger for the neckline to break and pattern to be valid. Short trade opens up only if neckline breaks.