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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