Market almost broke the bullish channel earlier but managed to get back in the channel by end of week. Now, will it be ready to stage an impressive rally and make NEW HIGH!!! Which side are you placing bets?
Nifty trying to get back above MA(100) and McClellan index appears to be slowing down the rate of descent. Both are suggesting to warrant caution at this juncture.
Nifty is back in the channel BUT can it stay in the channel for long!!! MA(50) can act as resistance on the way up...
Nifty weekly chart has not changed much, RSI has managed to stay above 50 mark.
Charts are telling is to be cautious at this juncture as we are NOT out of the woods.
What does it mean for our Investments?
Be cautious for opening new positions...
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 and see how market reacts near MA(50).
- 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.
Be cautious for opening new positions...