Market shrugged off BREXIT fears and back to resuming the uptrend. Market is climbing relentlessly with no meaningful pullback in sight so far. Let's see if we can get any clues from the charts...
Not much has changed in below chart:
- Nifty continues to remain above MA(100) & MA(200) suggesting bullish bias. Also observe, MA(100) on the verge of crossing MA(200) also known as "Golden cross" considered good for BULLish trend.
- McClellan Index has managed to stay well above EMA(59) and climbing suggests that more stocks are participating in this rally and the cumulative effect is positive.
Market trying to penetrate 8300 resistance area but the next resistance area is close at 8600 area. We would like to see PPO making a NEW HIGH, without which this market cannot sustain this rally. As market is making higher highs, MACD and PPO are NOT making higher highs which could be first signs of market loosing the steam in weeks/months ahead.
Resistance area near 8600 is clearly visible, hence we do not expect a run away rally beyond 8600 area for now.
BREXIT event in itself caused fear in the market but all markets across the global managed to recover in past week. Remember, markets have tendency to fool the masses hence we should accept the fact and follow the market. For now, it appears as if market is in no mood to provide any meaningful pullback, however we might be witnessing early signs in daily chart.
Market remains bullish and uptrend is strong.
Market remains bullish and uptrend is strong.