Do not buy into this rally.. it looks like a bull trap which is very common in all bear market corrections.
If technical analysis works, I can not think of a stronger sign for a big down move very soon..
1. Price corrected till golden fib 61.8% level and came down sharp in daily chart
2. It also coincides with the 200 EMA in daily chart.
3. Upward rally is not supported by good volume
4. RSI is touching the trendline even when price is yet to come down to touch the trendline. It shows indicator is not supporting the price moving up.
5. Higher high in price; but RSI made same highs.
6. Price is currently in a upward sloping wedge pattern which is a bearish pattern. Price bounced from the lower trendline of the wedge 3 times. Most of the cases, it breaks the wedge at 4th attemtp towards the downside.
7. The fundamentals are getting worse everyday (covid situation, economy, border disputes)
There is a big gap at 8100 level yet to be filled. If the wedge is successfully broken, price should technically break previous low of 7500 in an ideal bear market. I will be short with a target till 8100 though.
Disclaimer: Market is always right. It can prove any expert wrong any day.
If technical analysis works, I can not think of a stronger sign for a big down move very soon..
1. Price corrected till golden fib 61.8% level and came down sharp in daily chart
2. It also coincides with the 200 EMA in daily chart.
3. Upward rally is not supported by good volume
4. RSI is touching the trendline even when price is yet to come down to touch the trendline. It shows indicator is not supporting the price moving up.
5. Higher high in price; but RSI made same highs.
6. Price is currently in a upward sloping wedge pattern which is a bearish pattern. Price bounced from the lower trendline of the wedge 3 times. Most of the cases, it breaks the wedge at 4th attemtp towards the downside.
7. The fundamentals are getting worse everyday (covid situation, economy, border disputes)
There is a big gap at 8100 level yet to be filled. If the wedge is successfully broken, price should technically break previous low of 7500 in an ideal bear market. I will be short with a target till 8100 though.
Disclaimer: Market is always right. It can prove any expert wrong any day.