The market is really having a fun in a world of itself....Eleven days of continuous fall and then eleven days of upmove; 1000 points already being done on Nifty within a month (both legs combined)....I, personally didnot write any articles over the last 10 days because I wasn't sure of the extent of the upmove.
Lets note the following points:
1. The falling wedge has not been completed. I dont why?
2. Mathematical indicators like Stochs have already moved into extremely oversold position but Nifty could not make new highs....
3. A Doji Star has formed on the daily NF charts....
4. There is still a huge deviation from the 34ema on the weekly charts. Currently the 34 ema is at 4474 and is expected to be around 4520-50 by next week. Generally the major move is not possible unless that deviation is bridged at least once.
5. My "Mirror Pattern Theory" also suggests a correction.
6. Dollar is flowing out of India for the last 3 days. Buying is seen in delivery but there is short buildup in futures at 10 point premium.
Under the circumstances, I personally feel that profits should be booked for once. As for the lower levels, I will update later.
No comments:
Post a Comment