Market has stayed in a range from last three months and appears to be waiting for some shakeout news which shall provide a directional move. Lets check if charts are providing any credible evidence...
Below chart appears to be neutral:
- Market is simply moving from one end of the range to another end there by trapping Bulls & Bears
- McClellan Summation Index also appears to be stuck in a range
- Earlier this month PPO touched +5 mark suggesting possible pullback which coincided with BULL trap as market made a fake break out above 11000 area trapping anyone expecting a major breakout.
- At present, MACD is flat and PPO is near zero
Very tight range bound action is clearly visible in weekly Nifty chart below. Even weekly RSI, PPO & MACD are in neutral zone providing no clues regarding probable market direction.
All charts appear to be neutral hence it will be wise to wait until market provides confirmed directional move. The tight range for several weeks, suggest that any confirmed move will be explosive in nature hence be on guard.
Remain vigilant and wait for market to provide direction...
Remain vigilant and wait for market to provide direction...