What a move in a weeks time! Market decisively broke the BULL Flag and might soon find itself near next resistance near 5900 area. What to expect next!!!
Our Long term indicator, McClellan Index remains above EMA(59) as well as MA(100), hence market remains in bullish territory as of now. Also Nifty remains well above MA(100) and MA(200) suggesting no worries for now.
BIG move is clearly visible on daily Nifty chart on good volume suggesting further bullish move ahead. Soon market will reach near 5900 area where it will find next resistance, hence it is wise to expect pullback or sideways action. How far will this BULL move go? Well look at the pole of BULL Flag, ranging from 5200 to 5800 area, hence we can conclude that this move can go from 5750 to 6350 area approximately BUT NO guarantees. Remember. its game of probability and odds of further move in same direction are higher.
On weekly Nifty chart, we can see that Bull Flag is broken and market is headed higher. It is more likely that market will continue in this direction slow and steady.
What does it mean for long term investments?
Market remains in bullish mode...
- Mutual Funds: As we mentioned few weeks back that while was in consolidation, it was good opportunity to identify new Mutual Funds or you can add to existing in your portfolio. Hopefully you got a chance to do so. For now the bullish trend remains intact and no signs of worry.
- Stocks: Invest in right patterns and always have a target exit price with a STOP limit in place. Check our list of potential buy candidates.
Market remains in bullish mode...