Potential Head & Shoulders on Nifty

We were in an downtrend from March of last year and there was a clear downward trendlines which could be drawn forming a channel. We could also see a Head & Shoulders pattern on the daily and weekly charts of Nifty. Starting from budget day we have seen a consistent uptrend and a clear breakout of the down trend channel which is shown in the following image

varuntech

Now we have seen the retest of the trend channel which is now acting as support shown in the blue circle. I have tried to highlight with the curves a potential Head & Shoulders Pattern emerging which if successfully makes it will have a potential target of 9181 using conventional technical analysis which is close to the all time high of 9119. Although that is a very far target and should take some time before it reaches if at all medium term places of interest are also highlighted in the green areas. For now its a wait to see whether the red area is breached successfully with sufficient volumes to even think of medium term areas of interest.

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