Near Term Trend:↔(Neutral/Upswing maturing?)
Market update: Nifty opened positive and even hit a new high above 11750 but that saw some profit booking later and slipped to 11630 levels. It closed at 11644 down 70 points.
We had mentioned in previous post that market has been posting candle patterns on daily chart which are generally associated with topping pattern so there is a chance that market may correct from here. Even though market has seen just a 70 point fall which can be just a temp correction, there are plenty of indicators pointing towards a possibility of a bigger correction hence one need to be a little cautious here and see if this move down is transforming into something bigger. Today market posted an engulfing candle which broke below the lows of previous 2 candles.
Yesterday,We had also pointed out an uncanny resemblance in time cycles of last couple of big moves in market. Last years markets had started a down move from 11750 after completing 107 days of a corrective move and now again 107 days have been completed yesterday and on 108th day (today) we have seen some sort of a fall. Now its entirely possible that market again move up above 11750 post another high but at the same time there is also a probability that ABC corrective move has finished at 11760 today.
We should get a confirmation in next few trading sessions (RBI policy is also due) for now the pattern of fall looks strong hence we have changed the near term to 'neutral', We need further strength above 11760-800 levels now to change the trend to up. If we see weekness below 11630 levels then expect weakness to continue for now.
Happy Trading!
Market update: Nifty opened positive and even hit a new high above 11750 but that saw some profit booking later and slipped to 11630 levels. It closed at 11644 down 70 points.
We had mentioned in previous post that market has been posting candle patterns on daily chart which are generally associated with topping pattern so there is a chance that market may correct from here. Even though market has seen just a 70 point fall which can be just a temp correction, there are plenty of indicators pointing towards a possibility of a bigger correction hence one need to be a little cautious here and see if this move down is transforming into something bigger. Today market posted an engulfing candle which broke below the lows of previous 2 candles.
Yesterday,We had also pointed out an uncanny resemblance in time cycles of last couple of big moves in market. Last years markets had started a down move from 11750 after completing 107 days of a corrective move and now again 107 days have been completed yesterday and on 108th day (today) we have seen some sort of a fall. Now its entirely possible that market again move up above 11750 post another high but at the same time there is also a probability that ABC corrective move has finished at 11760 today.
We should get a confirmation in next few trading sessions (RBI policy is also due) for now the pattern of fall looks strong hence we have changed the near term to 'neutral', We need further strength above 11760-800 levels now to change the trend to up. If we see weekness below 11630 levels then expect weakness to continue for now.
Happy Trading!
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