Comment:
KANGAROO MARKETS
Comment:
As expected DJI has moved up, now is the time it has to deal with trendline. Lets see how it behaves
As expected DJI has moved up, now is the time it has to deal with trendline. Lets see how it behaves
Comment:
$ point touch completed, target 1 done, now lets see reaction at trendline. Best case scenario is gap up opening on Friday for it will give clear trend indication.
Otherwise one can see a reaction at trendline with some retracement followed by an upmove.
$ point touch completed, target 1 done, now lets see reaction at trendline. Best case scenario is gap up opening on Friday for it will give clear trend indication.
Otherwise one can see a reaction at trendline with some retracement followed by an upmove.
Comment:
RANDOM THOUGHTS ON DOLLAR INDEX
Taking Dollar Index as a measure of being inversely proportional to DJI. If you see dollar index on weekly / daily charts they are at the mean and Fridays bullish engulfing candle is a precursor to its upmove in two or three sessions.
There is first trendline and 20 EMA to give it a pause and thereafter is the second trendline. I see dollar index moving up to second trenline say for next 6/7 weeks creating volatility in the DJI and thereafter breaking it till the pitchfork level of 105.
This will classically create a double top around that levels and then a sure down move should commence. If assuming the above postulate comes true DJI and NIFTY both will start it downward journey on tuesday/wednesday.
Now this upmove on DXY is likely to break the March levels on DJI taking DJI to new lows or may be till the bottom of the box. If this be so the NIFTY too will start its southward journey.
Everyone sees the same chart and same candlesticks. Weekly three/four white soldiers are followed by some consolidation and breakout ie the conventional prediction.
However I have given the contrarian view which may or may not come true.
Views Welcome
regards
RANDOM THOUGHTS ON DOLLAR INDEX
Taking Dollar Index as a measure of being inversely proportional to DJI. If you see dollar index on weekly / daily charts they are at the mean and Fridays bullish engulfing candle is a precursor to its upmove in two or three sessions.
There is first trendline and 20 EMA to give it a pause and thereafter is the second trendline. I see dollar index moving up to second trenline say for next 6/7 weeks creating volatility in the DJI and thereafter breaking it till the pitchfork level of 105.
This will classically create a double top around that levels and then a sure down move should commence. If assuming the above postulate comes true DJI and NIFTY both will start it downward journey on tuesday/wednesday.
Now this upmove on DXY is likely to break the March levels on DJI taking DJI to new lows or may be till the bottom of the box. If this be so the NIFTY too will start its southward journey.
Everyone sees the same chart and same candlesticks. Weekly three/four white soldiers are followed by some consolidation and breakout ie the conventional prediction.
However I have given the contrarian view which may or may not come true.
Views Welcome
regards
DJI after bottoming out is moving up, the current dip is just a retracement before commencing its upmove.
NIFTY after completing it upmove has not classically bottomed out and its scope for fall remains. What held NIFTY from falling?
Numerouus factors - Macro economics, better handling of COVID, FOREX res, political leadership, not bad earnings despite the fall, availability of liquidity and accommodative stand by RBI. There may be many other factors but bottomline NIFTY held.
In future the question which is pertinent is "Will upmove in DJI pull Nifty to new highs"?
The entire move looks akin to move from Feb 2018 to Dec 2019 wherein price was making HH while RSI was making LL with clear emerging divergence which culminated in COVID fall.
It looks like history will repeat however in the interim there will short rallies and drops mostly around the encapsulated box of NIFTY. One should not expect a massive bull rally in near future.
Views welcome.
Regards