Last week, market made a huge move on good volume and the BULL Flag was broken which is considered bullish in near term. But the key question should be, how far can this move go? Can you predict!!!
No changes in market outlook based on below chart, Market continue to remain in bullish territory for now.
Below daily Nifty chart displays, breakout of BULL Flag. Now that market has made some significant moves on good volume and existing resistance near 5900 area (not visible in below chart), it would be wise to expect market to pullback or remain in sideways action for few days. It is also known as digestion of the move and is considered healthy for the market.
Resistance near 5900 area is clearly visible in weekly Nifty chart below. Most likely, market will pause here for few days before heading towards next target of 6100-6300 area. Also coincidentally the length of the pole of bull flag happens to match this target as well.
What does it mean for our Investments?
Market remains in bullish territory...
- Mutual Funds: Stay invested as we do not see any signs of concern for now. You may want to take this time to identify the best runners and re-allocate or invest new capital in TOP 1-3 mutual funds.
- Stocks: Make sure you invest in right patterns and take partial profits along the way. Always have STOP LIMIT on all your positions. Visit our Potential BUY Watch list for guidance.
Market remains in bullish territory...