The end of day chart for the nifty is showing three different patterns, with opposing implications.
First, an ascending triangle in the Nifty has been confirmed when prices broke out above the horizontal resistance at 4800. A pattern target is set at 5070. If this actually does work out then later when stock market history is written, this pattern will be identified as the start of the new bull market. If the pattern fails, then it will be consigned to the dustbin of failed patterns, forgotten.
Second, the current rally in the Nifty is taking the shape of a rising wedge. A rising wedge is a bearish pattern which comes about half way in a downtrend. Assuming the downtrend started from 5100 and continued till 4530, the half way points are 570. Then, a breakdown is the wedge, around 4750 should lead to a decline of 570 points, giving a downside target of 4180.
Third, a symmetrical triangle as broken out on the upside. I am not a fan of this pattern, since it has a large percentage of failure. So, I am not looking at this one.
The question is: will the ascending triangle meet it's target or fail? We will find out in the next few days.