NIFTY 50 : Since 90s

There is lot of useful information for traders and investors. So not writing much in notes. May be you will have to adjust your charts to accommodate everything so no excuses for that.

JJSingh

Comment:

There are three important things on this chart.
1. Pullback Buying opportunities
2. RSI
3. Cycles

1. After every breakout market pullback to the breakout level to retest and that provides an excellent opportunity to invest. Historically, buying at panic bottoms have given best returns.

2. Almost at every retest, RSI pullsback to near 40. At panic bottoms its even below 40. This adds an extra confirmation to buy an oversold market.

3. There are two cycles which have been repeating since early 90s. These are 34 and 50 month cycle. There is a margin of error in this cycle as can be observed from the chart. It simply means that successive bottoms do appear at an interval of 34 months or near a 50 month interval.

All the above three parameters coincide at or near a bottom and hence have been attracting money in the market for the last three decades.
Can u find find out where the next bottom can be expected as per market cycle? Share in the comment section.