NIFTY MIDCAP Select - Swing SHORT
Nifty Midcap Select index made high on 16th Sep 2024 and then declined about 10% over the following 8 weeks. Uncharacteristic of pullbacks in the current bull run that started from Apr'2023, this decline was longer, printed 3 wide range weekly RED candles and also sustained below 100 day EMA or 20 Week EMA.
The subsequent rally from mid-nov to mid-dec, though strong, did not have broader participation. The number of stocks above 100 D SMA went down from 80% on 16th Sep to 44% on 17th Dec (recent high).
Now, with sharp decline on 20th Dec'24, odds weigh strongly in favour of bears towards move to bottom end of the falling channel range which presents a SHORT trade opportunity for the next few weeks.
Shared for learning purposes.
The subsequent rally from mid-nov to mid-dec, though strong, did not have broader participation. The number of stocks above 100 D SMA went down from 80% on 16th Sep to 44% on 17th Dec (recent high).
Now, with sharp decline on 20th Dec'24, odds weigh strongly in favour of bears towards move to bottom end of the falling channel range which presents a SHORT trade opportunity for the next few weeks.
Shared for learning purposes.
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