Market has managed to stay near ALL TIME HIGHs and at present undergoing pullback. How will this play out in next several months? Are we on the verge of the next massive BULL rally!!! Let's take a look at few charts...
As expected and mentioned in earlier blog post, market did retrace back to MA(100). However, observe how McClellan Index came close to EMA(59) but did not change the trend direction suggesting more stocks are advancing compared to declining.
Daily Nifty chart shows that market appears to have found support at MA(100).
Weekly chart suggests that market is consolidating near HIGHs. Also an approx cup & handle type pattern can be seen which is considered bullish. We would like RSI to touch oversold level, however it looks unlikely.
We believe that market may come down further to 8300 level and then resume the BULL rally or simply continue higher from current levels, either way we DO NOT want to miss this bull train as this has a potential to triple from current levels similar to 2004-2007 era.
Market remains in strong bullish territory...
Market remains in strong bullish territory...