Three signs of strength witnessed on this chart: 1. Shortening of the thrust -- Price breaks the lows but there is not much follow through. 2. Ease of movement in three up waves as price bounced back from 14250 support zone. 3. Higher lows formation under 15000 as psychological flat resistance zone. Two signs of weakness: 1. Price breaks out of 15K zone, which is...
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Hi In this article I will discuss how classic market tops develop and in this background I will try to analyze whether our market meets the conditions necessary for it to be declared at its top. Acceleration As we can see that market was behaving nicely in the primary channel (white). Suddenly it changed its behavior and started to accelerate in a new channel...
Nifty had a small upthrust above 11760 resistance before it started its downtrend. It held 11550 level for some time and then broke down. My hypothesis is that It may hold 11200 for a week or so and then go for the retest of potential support zone (10900-11100). As the volatility is high, smooth price action should not be expected. Historically speaking, we had a...
Bajaj Finance has been one of the relative outperformers in comparison to the Nifty 50 Index. After a period of consolidation, the price registered a breakout yesterday with huge trading volume. I am watching this stock with interest and looking for clues as to the nature of this breakout. One possibility is that the breakout is an "upthrust" and price could then...
RSI Divergence in double top area is showing the potential weakness. The pseudo upthrust bar yesterday with big volume is another confirmation for the potential short today with Stop Loss just the high of the previous day bar.
The stock has been stuck in a broad range of 71-204 in the past few years. The recent rally has pushed the stock to the upper end of the trading range at 204-ish. Notice the selling tail in the current month candle. The spike in volume and the selling tail suggests that this *might" turnout to be an Upthrust or fakeout. Before jumping to conclusions, it would...