After experiencing a pullback, market has managed to get back near earlier HIGHs. Will it breakout to NEW HIGHs and continue the BULL trend? Is this the right time to get in the market!!!
Nothing changed in below chart and all signs remain bullish:
- Nifty well above MA(100) while MA(100) well above MA(200) and all trending higher
- McClellan Index well above EMA(59) and both trending higher
As mentioned in last weeks post, market managed to get back above MA(50) rather quickly and anyone who had MA(50) as STOP got shaken out.
On weekly chart, see how market managed to hang onto WMA(10) support and could possibly breakout to new HIGHs.
If market takes a pause near HIGHs then that would be ideal scenario to take new positions on breakout, however you need to be cautious and have STOP LIMIT in place depending on your risk appetite. Considering current geo-political situation, things can get dicey at any moment. As of now market appears to be consolidating near HIGHs which is considered to be a very good sign for bullish trend and can make BIG moves once it breaks out.
What does it mean for our Investments?
Market remains in strong bullish trend and currently in consolidation...
What does it mean for our Investments?
- Mutual Funds - Stay put if invested in equities, new positions can be opened ONLY if market breaks out to NEW HIGH. If in cash/liquid funds/FDs then the next low risk opportunity will be when market breaks out to NEW HIGH.
- Stocks - ONLY invest in strong patterns and DO NOT forget to have STOP LIMIT for all open positions. Check out our trade size calculator to manage risk on individual positions.
Market remains in strong bullish trend and currently in consolidation...