Are we heading towards a NASTY GLOBAL CRASH! #DJI # NIFTY
I have been tracking the DOW JONES weekly chart from the last couple of months when it started showing consecutive green days regardless of global factors, earning reports, etc.
So what intrigues me out of the weekly chart is the hastiness of the DOW towards the upper band of what appears to be a forming RISING WEDGE.
DOWs rise recently has been crazy to say the least. Last month would make even the dumb money feel like a Buffett or a Jesse.
Its been on a continuous rise, plain and simple, no matter what.
Now according to the chart we can take the spot levels of anywhere between 23450-23650 to be the reversal zone for DOW and it might retrace all the way down towards the lower band of the RISING WEDGE and by that time if the relevant factors are weak then it might fall down and then we'll be looking for a new support level but that would be a big downfall(CRASH) and also the global markets will follow the pattern.
And as far as our markets are concerned what I found interesting was that Nifty is also making the same pattern of RISING WEDGE on the weekly chart.
Investors should keep an eye on these things and should be aware, whereas for the traders, you know how we do it!
SNAPSHOT OF NIFTY RISING WEDGE on WEEKLY CHART
So what intrigues me out of the weekly chart is the hastiness of the DOW towards the upper band of what appears to be a forming RISING WEDGE.
DOWs rise recently has been crazy to say the least. Last month would make even the dumb money feel like a Buffett or a Jesse.
Its been on a continuous rise, plain and simple, no matter what.
Now according to the chart we can take the spot levels of anywhere between 23450-23650 to be the reversal zone for DOW and it might retrace all the way down towards the lower band of the RISING WEDGE and by that time if the relevant factors are weak then it might fall down and then we'll be looking for a new support level but that would be a big downfall(CRASH) and also the global markets will follow the pattern.
And as far as our markets are concerned what I found interesting was that Nifty is also making the same pattern of RISING WEDGE on the weekly chart.
Investors should keep an eye on these things and should be aware, whereas for the traders, you know how we do it!
SNAPSHOT OF NIFTY RISING WEDGE on WEEKLY CHART
Also Nifty too faced a price rejection in the reversal zone mentioned in the post and till now both the indices are almost following the same path sneakily enough so that one can easily miss their similarity of movement.
The fear gauge of DOW also rose to 14.34 it's highest since Aug 29 2017.
Whereas, India VIX has also managed to stay above 14 the whole last week.
Having said that, we are for now expecting a bounce in Nifty from the current levels within 3-4 sessions. Keep an eye out.