Market has managed to move back into the bullish channel and even managed to climb back above MA(50). Can it sustain this move an continue to stay in the channel!!!
What is below chart telling us?
- Nifty is back above MA(100) - sign of relief for now
- McClellan index remains below EMA(59), however it is flattening out which could be potentially a good sign
Market climbed back into the bullish channel and also rallied above MA(50)
Weekly chart does shows divergence still in play, however RSI has managed to stay above 50 mark all along.
For now, it appears that market went back to its bullish mode, however this can turn anytime so remain cautious. This certainly cannot go on forever and at some point the breakdown will happen, the higher we go in the bullish channel the risk will keep getting elevated.
What does it mean for our Investments?
Market remains bullish for now...
What does it mean for our Investments?
- Mutual Funds - If already invested in equities then stay put. If in cash/FDs/liquid funds then wait for market to stabilize a bit before entering, however if the bullish channel is broken then all bets are off.
- Stocks - ONLY invest in strong patterns with good earnings guidance and DO NOT forget to have STOP LIMIT on open positions. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market remains bullish for now...