Price is not relenting in its race to reach greater tops.Defying the expectation of many that the top has been reached at 4900 zone , it did not wait to rush upwards.
I've marked the series of swing highs and lows and the pattern is clear with higher highs and higher lows.No signs of slowing.Today was a gap day and consolidation and close at high area.Positive view is that nifty looks to be set to reach the orange median line at approx 5100 zone if it moves with the same momentum without a sideway's range. And if so , andrew's rule will be proved once again.( Andrew's rule states that price will meet the Median line 80% of the time)
Downside, Retracements to fill the gap and at support exists at 4930 level is a possibility due to profit booking.The clue to a reversal in trend can only be when price closes below 4930.Till then with price within the lower channel of the orange pitchfork , the uptrend is in force.
The gap up on 17th and 19th would not have allowed many to climb onto the rally ,as looking around ,majority opinion was a fall from 4900 zone ( including me , closed all positions at that level)Long term positional traders would have gained if they had sat tight.:)
Current market moves do not give a good location to enter positional trades on both sides.Long trades RR ratio is not good and for shorts the bearish patterns / a fall below swing lows are yet to happen.So waiting at the sidelines for a suitable entry.Till then Bulls are the winners.....
No comments:
Post a Comment