After reaching the upper end of the bullish channel, Market starts its retreat for 6 consecutive days. This should not come as a surprise to readers of this blog. Does this mean that market will visit lower end of the Channel in coming weeks ahead?
What is below chart telling us?
- Nifty remains above MA(100) while MA(100) is above MA(200) & both are trending higher - suggesting bullish action
- McClellan Index continues to remain below EMA(59) while trending down - suggesting to observe caution
Bullish Channel is very evident from below daily Nifty chart. Market continues to drift in this Channel and now appears to be headed towards lower end of the Channel, however DO NOT expect a smooth ride to other end.
Weekly chart is confirming the market action being range bound in a Bullish Channel.
Market can continue to drift in this Bullish Channel for weeks/months and unless it breaks down below the lower end of the Channel, Bulls get the upper hand. Enjoy the bullish action for now.
What does it mean for our Investments?
Market remains in strong bullish trend...
What does it mean for our Investments?
- Mutual Funds - Remain invested in equities along with continuation of SIP. If in cash/ liquid funds/ FDs then wait for next low risk entry.
- Stocks - ONLY invest in strong patterns and always have STOP LIMIT for open positions to protect gains or limit losses. Check out our trade size calculator to manage your risk along with potential buy candidates watch list.
Market remains in strong bullish trend...