Mindful of NIFTY Small Cap!

Nifty has around 50 stocks, Nifty Mid cap has around 150-200 stocks and rest are Nifty small cap. Nifty small cap consists of 90% stock in Indian stock market. As per the weekly price pattern, small cap index has strong support at 8500 and it is broken this week. This chart pattern is confusing me as one way we can see a downward slopping parallel channel. But on the other hand, we can see a breakdown of head and shoulder trend reversal pattern too. If we make a strong red candle next week and breach the channel then be very cautious and put a strict stop losses to your portfolio. Head and shoulder breakdown on weekly chart suggests we can go in medium term down trend ( may be for couple of years). This will bleed your capital. In stock market up or down trends are common but for investor saving the capital is utmost priority. We will once again review this position next weekend.