Dec 20, 2018

Beginning of Reversal from Short Term Up Trend Or Just Breather at Resistance : NIFTY-50 View


Beginning of Reversal from Short Term Up Trend Or Just Breather at Resistance : NIFTY-50 View

In our past week updates, we have been constantly saying that to trade successfully first you need to understand what type of market you are in, like bullish uptrend, bearish downtrend, or sideways and so on. Suppose, we are in a sideways/pullback kind of market, then we need to decide how to trade it. There are different approaches and styles to trade these different types of markets. Many traders trade only one type of market and stay away in other types of market, while some all-season traders or ‘every-day’ traders trade in all type of markets.
Anyways, lets come to market analysis, we yesterday market could give gap up above 11000 points nifty-50 index, but yesterday itself it kind of touched that level, and came off later on. However the index didn’t closed in DOJI pattern, but opened gap down/lower today morning which makes it vulnerable to making a very reliable evening star pattern which could either send market in a good decline of 200 points of more or even reversal to its six month old downtrend or more possibly just the sideways market. We believe the later more probably.
The NIFTY 50 INDEX is right now at 10900 and a slow decline of 200 points as mentioned in one of the scenario is possible, however in that case the midcap rally and individual stock outperformance may continue as repeatedly mentioned in last many updates. Looking at the response of the markets to last many sell offs in USA markets, the ‘evening star pattern’ backed sell off and revert to the 2017H2 correction cum bear market phase does not seem a lot probably, however we should be ready with all options when one is trading in the market where best brains of the world come to make money.
Read previous posts for further references.


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