- Every time market broke out to NEW HIGH, significant gains were made in relatively short span of time
- Do we see a pattern here!!! First breakout at 2000 was followed by significant gains of almost 100% as market went close to 4000 before a flash crash. Next breakout at 6000 were also followed by significant gains as market went to 9000. Now we get another breakout at 9000, what do you think will happen!!! Take a guess...
- Also check indicators at every breakout, RSI above 50 mark, MACD rising, PPO above zero mark, Ultimate oscillator above 50 mark and CCI above zero mark. In current scenario, only MACD needs to turn upwards and then we have all the conditions ready for the next stage of the rally
BUT WHY 12000?
The last major breakout happened near 6000, and before that a major low was near 3000. Simple math tells us 6000 - 3000 = 9000 which is the most recent HIGH. Market often repeats the magnitude of previous recent move, in this case it would be 9000 - 6000 = 3000. Hence our next milestone target is 9000 + 3000 = 12000.
BUT we believe that the ultimate target should be between 15000-18000 and WHY is that?
After initial breakout of 2000, markets ultimate HIGH came in at 6000 which is 3 times (2000 x 3) the original major breakout. Our recent major breakout was near 6000 and if market does repeat the magnitude of previous moves then we shall get 3 times the recent major breakout which means 3 x 6000 = 18000, however this might be taking it far unless market goes into euphoria stage.
Whats the estimated timeline for reaching 18000? or 12000 for that matter?
- This is very hard part to determine but lets take a guesstimate
- We believe 12000 shall be achieved some time in a year or two
- Now 18000 may not be achievable unless market goes into euphoria stage (an illusion is created that this market will keep going up forever and everyone buys it without thinking) which usually happens near end of BULL market (2007) and if that at all happens then we expect to see that in next 2-3 years
One might feel..... this is all BS, utter non-sense and rubbish without any real facts.
Well, make your own opinion and smart decisions. That is the real intent of this site and as long as we instigate that behavior, we believe we have achieved our goal.
Good luck investing...