Last week, market spent time consolidating in narrow range. Next week shall decide if this is mere a BULL TRAP or change in trend. Euro-zone summit is scheduled next week which will provide some direction regarding Euro stability. Any positive news/action will trigger a rally while lack of action/decision will trigger sell off. How do we know when to act!!!
Nothing really changed in below chart, wait till market breaks MA(100) which will trigger our BUY signal.
Below Nifty chart, shows Nifty broke the down channel and currently consolidating in narrow range. Break of this narrow range to UP side (break above black line) will be bullish sign while falling back into the down channel will be bearish sign.
What do we know so far?
What should we do?
Stay alert and do not forget to manage risk...
- Market wants to move higher based on current action and probability
- News from Euro-zone is driving the market direction
- All eyes will be on Euro Summit scheduled to happen next meet
What should we do?
- Have patience and wait for market to breakout
- Ideal time to do research and create watch list of stocks & mutual funds
Stay alert and do not forget to manage risk...