On Friday Nifty made a spirited attempt to break out above the 12000 levels but eventually by midday corrected almost 200 points from the high to close mildly in the red. It is still holding the support of 11800-11850 which I think should give away next week in view of the negative newsflow everywhere. A potential double top is visible with a target around the 50 day EMA currently at 11550. The short term negative PPO crossover has already come on Friday.
The status quo on the weekly charts remains. Higher price close is not supported by a higher close on the oscillators, resulting in bearish divergence on the indicators. If Nifty corrects during the next week we will have negative EMA crossovers in both RSI and PPO and that will trigger some serious pullback as discussed in the Monthly Wrap May 2019 – Book Profit, Stay in cash.