Market continues to show strength, however remember that after every big move it needs time to digest the move. This can happen either by sideways action or pullback. What to expect in near future!!!
From below chart it is clear that market remains in strong UP trend. Long term trend remains in UP trend as we do not see any signs of concern from below chart.
Slowly creeping higher after BIG move, expect sideways action or pullback. From last couple of days action, we can clearly see tails on top of daily bars, which is indicating that market is NOT closing on/near days high. The longer the tail on top of the bar the harder it will get market to sustain the rally. However, that does not mean the rally is under pressure. It simply means that market may move sideways or might be prone to a pullback.
On weekly Nifty chart, we can see where market is headed. Nothing new here, market may continue to climb till 5900 area before a meaningful correction.
In short, market is currently in UP trend BUT expect sideways action or pullback.
What about our Investments?
Stay focused and alert...
What about our Investments?
- Mutual Funds - Stay invested as all signs are bullish for now
- Stocks - Invest in good patterns and DO NOT forget to have STOP LIMIT in place
Stay focused and alert...