Market broke out of the consolidation range established in last few weeks. As expected the breakout happened ONLY after decision on US Fiscal Cliff was reached. What to expect next!!!
Nothing new in below chart, market continues to show bullish strength and no signs of worry for now. But WHY?
- Nifty remains above MA(100) and MA(200)
- McClellan Index remains above EMA(59) and MA(100
Clear breakout is visible in below daily Nifty chart. As you can observe in below chart, market never climbs UP in a straight line but rather in breakout-pause or breakout-pullback pattern. Market continues to remain above the trend line there by suggesting strong bullish phase.
On below weekly Nifty chart, breakout is clearly evident after few weeks of consolidation and next target area will be 6100-6300. At this level, market will experience significant resistance and we might see lot of volatility or major pullback/correction.
What does it mean for our Investments?
Market continues to show bullish character....
- Mutual Funds - Stay invested as market is not showing any signs of worry so far.
- Stocks - Continue to invest in right patterns but always have STOP LIMIT in place.
Market continues to show bullish character....