Sensex managed to stay above its 200 day moving average which is acting as support for now. In short, market may be ready to start next leg up. What makes us believe that!!!
So why do we feel Sensex is done moving down and might be ready to make the next leg up!!!
From below chart it is clearly visible that market is in pullback mode and 200 day moving average is acting like support for now. Nifty has managed to stay above its 200 day moving average and consolidate in a range, once the dotted line is broken which will signal market is continuing the up trend and possible BUY signal. McClellan summation Index chart shows that market has changed the trend and started a new UP trend which might continue for couple of months for now.
From below chart it is clearly visible that market is in pullback mode and 200 day moving average is acting like support for now. Nifty has managed to stay above its 200 day moving average and consolidate in a range, once the dotted line is broken which will signal market is continuing the up trend and possible BUY signal. McClellan summation Index chart shows that market has changed the trend and started a new UP trend which might continue for couple of months for now.
Below we can see another Nifty chart which shows how the trend line can act as support for Nifty at these levels and Nifty may possibly bounce from these levels continuing the UP trend which started in late December 2011.
In short, all charts indicate that we might "probably"see a continuation of UP trend for the markets from these levels, however remember that nothing is guaranteed. For now the probability of markets moving higher seems more likely and all that matters is we align ourselves on the right side of the markets, Isn't it!!!