After breaking to ALL TIME HIGH in March 2017, market has been rising slowly as if teasing everyone who missed the BULL train. So if anyone did miss the train then what shall they do? Will we get another chance to hop on the train?
No trouble signs as per below chart:
- Nifty well above MA(100) while MA(100) has crosses MA(200) upwards confirming the current trend
- McClellan Summation Index has managed to stay above EMA(59) which suggests more stocks are advancing compared to declining thus supporting current market action
Daily Nifty chart remains bullish even though we may see divergences between Price and RSI, MACD and PPO.
Weekly chart suggest that current market action can continue as long as RSI remains above 50 mark, however watch closely slight divergence between Price and MACD & PPO. The divergence is very subtle and can be overlooked very easily.
Overall charts are not showing any immediate danger, however weekly chart is showing subtle caution signs. Usually, during a BULL run, market tends to undergo flash crash every 5-8 months (watch monthly chart from 2005-2008) which does not last longer than a month but achieves two important things:
Market remains in strong bullish territory, however be cautious....
- Set in fear and panic
- Equilibrium has to be maintained which means overly bullish sentiment needs to be kept in control
Market remains in strong bullish territory, however be cautious....