Nifty - are these 1st signs of crack or just a minor pull back.
Nifty corrected a little from the high levels.
Index levels are mentioned in chart itself, RSI is showing negative divergence, one support line is broken decisively another long term support line is very close. Another reliable indicator CCI is indicating weakness (below 100) too.
We know this rally is not supported by fundamentals, economic indicators don't justify these levels.
Liquidity based rallies fizzle out very fast, international news flow is not supportive - US markets are correcting, bullion has recovered, USD is strong. All this is indicating "some more weakness is possible in Indian markets."
As a trader it is important to follow the trend and keep a close eye on reversals too.
FOLLOW whatever indicators you follow for medium term trend reversal, and do act on first confirmed signs of reversal.
RSI below 60 at closing, RSI 21 trending below 9EMA on a daily chart can be the first signs of weakness and
9EMA converging below 45EMA on index and RSI BOTH is a sure shot sign of medium term trend reversal.
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This post is not an advice to speculate using leveraged products, one must thoroughly understand the financial implications, consult some financial adviser before taking any positions.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Please consider hitting the LIKE button below the chart, if you find this post / idea worthy. You may also FOLLOW me over this forum for periodic updates on Nifty , Bank Nifty and bullion.
Index levels are mentioned in chart itself, RSI is showing negative divergence, one support line is broken decisively another long term support line is very close. Another reliable indicator CCI is indicating weakness (below 100) too.
We know this rally is not supported by fundamentals, economic indicators don't justify these levels.
Liquidity based rallies fizzle out very fast, international news flow is not supportive - US markets are correcting, bullion has recovered, USD is strong. All this is indicating "some more weakness is possible in Indian markets."
As a trader it is important to follow the trend and keep a close eye on reversals too.
FOLLOW whatever indicators you follow for medium term trend reversal, and do act on first confirmed signs of reversal.
RSI below 60 at closing, RSI 21 trending below 9EMA on a daily chart can be the first signs of weakness and
9EMA converging below 45EMA on index and RSI BOTH is a sure shot sign of medium term trend reversal.
+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
This post is not an advice to speculate using leveraged products, one must thoroughly understand the financial implications, consult some financial adviser before taking any positions.
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
Please consider hitting the LIKE button below the chart, if you find this post / idea worthy. You may also FOLLOW me over this forum for periodic updates on Nifty , Bank Nifty and bullion.