Market took a dive last week and currently trying to find a support. We are probably witnessing long term trend change BUT on what basis do we anticipate a trend change? Can we find any clues and more importantly have a plan!!!
Below McClellan Index chart shows Nifty is very near MA(100) line and soon might find itself near MA(200) which shall trigger our long term SELL signal as McClellan Index is also below EMA(59) and MA(100).
What clues can we find in below chart for a possible long term trend?
Look at box A -
Look at box B -
Look at box C -
So you be the judge and tell us under "comments" as to what is your take on this situation!!!
What clues can we find in below chart for a possible long term trend?
Look at box A -
- McClellan Index remains below EMA(59) and continues to drop
- Nifty remains above MA(100) and MA(200) and continues to make NEW HIGH
Look at box B -
- McClellan Index makes several attempts to cross EMA(59) but cannot succeed for almost 6 months
- Nifty displays having hard time to remain above MA(100) and eventually continues its bear trend
Look at box C -
- McClellan Index continues remains below EMA(59) so far
- Nifty displays having hard time to remain above MA(100)
So you be the judge and tell us under "comments" as to what is your take on this situation!!!
Nifty appears to be resting on MA(50) in below chart. Will it bounce or drop further to MA(200)? It might be difficult for Nifty to have a meaningful bounce considering current scenario and it won't be a surprise to see Nifty drop further below.
Nothing new on weekly Nifty chart below. Market may attempt for a bounce but will it stick around?
What does this mean for our long term Investments?
Market may appear to be in bullish channel but be careful...
- Mutual Funds - At this juncture we have a choice to make. Either wait for signal confirmation meaning, Nifty fails to remain above MA(100) & MA(200) and then attempts for a bounce. OR be ready to exit as soon as Nifty generates SELL signal.
- Stocks - Be careful as stocks may not follow through on the breakout hence have tight STOP limit in place. It might be wise to take gains and remain in cash.
Market may appear to be in bullish channel but be careful...