As expected market has managed to climb near recent HIGHs and shall be experiencing resistance. So, Is it the right time to get in? What will happen from here on? What are charts telling us?
Key information in below chart:
- Nifty well above MA(100) and while MA(100) trying to stay above MA(200) - all signs are bullish so far
- McClellan summation index is well above EMA(59) and rising - suggesting bullish bias as more stocks are advancing compared to declining
Daily Nifty chart suggest that market is in overbought stage and needs some rest after a good rally, also MACD has turned.
Weekly chart displays that this is third time market is trying to breakout to NEW HIGHs, as mentioned earlier the more times a level is tested, it is easier to break that level.
We expect this market to be choppy for few weeks and go sideways near 9000 area, this can also be attributed as market is taking a breather after a nice rally from 8000 area. However, once the sideways action is over then expect a STRONG breakout to upside and be ready to enter the market as we might not get a second chance. The next rally shall continue for months to come and anyone that does not get on the train will miss significant gains ahead, so lets prepare ourselves and be ready.
Market remains in strong bullish territory...
Market remains in strong bullish territory...