Market has recovered very nicely in last two weeks but this Sunday will decide the fate and near term market trend. Greece is having elections this Sunday and depending on which party wins the election will decide fate of Greece to remain as part of Euro-zone. However in worse scenario, if Greece exits Euro-zone then market will tank without any doubt. BUT central banks across the world are prepared for this scenario and may pump enough liquidity into Euro-zone to avoid catastrophy. What does probability tell us!!!
Below chart shows Nifty broke the dotted line but still not above its MA(100), however Nifty may soon cross it from below which would trigger BUY signal. Also McClellan Summation Index is currently below EMA(59) but shall soon cross it from below. This would signify a bullish trend continuation for next couple of weeks/months.
Below Nifty chart shows, the down channel represented by dotted line is broken by Nifty. Also Nifty is above its MA(50) & MA(200). The double bottom formation (known as W pattern) is considered bullish. The ONLY bearish pattern is MA(50) crossing MA(200) from above (known as death cross).
What could be most probable outcome here!!!
From patterns and technical analysis, it looks like market may continue bullish trend from here, however Sunday's Greek election will decide if market will move up on Monday or back into downtrend channel. BUT if it moves up then this might be a good time to get into market. Use stock watch list so that we do not miss opportunity to get into the a good breakout pattern.
Always have good risk management strategy for any investment we enter into...
From patterns and technical analysis, it looks like market may continue bullish trend from here, however Sunday's Greek election will decide if market will move up on Monday or back into downtrend channel. BUT if it moves up then this might be a good time to get into market. Use stock watch list so that we do not miss opportunity to get into the a good breakout pattern.
Always have good risk management strategy for any investment we enter into...