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Upthrust

Nifty Futures: AnalysisThree 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 good, but range of the bar is narrow and volume is below average. 2. Price turned back below 15000 mark signaling failure of breakout, so looks like an upthrust. # There is not much supply as the price retraces below 15k level again, signaling not much sellers are present but I will look at volume at the end of day. So it is yet to be confirmed. To resume the uptrend -- A close above 15050 will provide confirmation. In case of lack of movement on the up side -- it may retrace back to 14300. Hope this volume spread analysis 'll help you to take better trading decisions. Regards JJSingh
NSE:NIFTY1!
by Bravetotrade
4
NIFTY: 'Classic' Market TopsHi 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 (pink). It reflects greed where everybody wants to buy, irrespective of the market valuations. Overbought This is a typical condition where markets jump out of the supply line of the trend channel. The tendency after such an event is to get back into the channel. A we can see at A, B and C in the chart when it jumped out of primary channel. Wide range bars Another common observation at market tops. The volatility increases and the range of the bars, compared to previous so many bars, suddenly widens. We can clearly observe the recent formation of such wide range bars in our market. Distribution at the top A very powerful and rare observation at the higher time frame charts (monthly), but very common on lower time frames. We generally observe sharp reactions from the top. Markets then rally as if everything was normal. It then peek-a-boo above the previous highs and tumbles down. It may rally again to retest the highs but with no buying interest at the top level. It means that the market makers are in distribution mode. They support the market at certain psychological levels and begin to distribute to the heard again near the top. When the distribution is complete, they stop supporting the market and lock everybody at the top. Shortening of the thrust and Upthrust The market makes new highs but without any further progress. And this progress keep on diminishing at every attempt to make new highs. Clearly visible at A, B and C. Also at C there is an upthrust (can't discuss here) with next bar down which confirms the rejection. Unfortunately I dun have the Volume on the index charts so can't do VSA, otherwise the scenarios would have been logically more clear. With all this in the background, I have reached to the conclusion that our market is forming a top. A top which will be remembered for a couple of years. One can wait for a lower low formation to confirm but that condition is sufficient for lower time frames. Also It is possible that market bounces sharply from 10600 zone or 10000 zone but those rallies should be played for quick gains. Selling the weakness on such rallies will make us big money. The levels like 9500-9000 may be seen in the coming months. But have patience, this is gonna take some time. I hope it makes sense for everyone and help in your future decisions. Trade Safe, Stay Healthy. JJ
NSE:NIFTY
by Bravetotrade
5
Nifty AnalysisNifty 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 fall of 1700-1800 points, which started from the same region in September 2018, but with a difference. If you look at the rectangular area, the buyers had some conviction which can be noticed from the tails below the red bars. But this time in 2019 correction, there is no such tail. It maybe because of political uncertainty which has been keeping buyers on the sidelines. In future, I expect some bounce or hold at the support zone. Nifty's inability to hold at support may open the door for 10200 targets. Although this target looks overextended yet nothing is impossible in this market. So in short either we can have the breakdown of the same order as we had in 2018 or we just hold at the mentioned support zone and resume the uptrend, which is highly likely if we have any stable government. I hope this brief analysis makes sense to most traders. Do like and comment Regards
NSE:NIFTY
by Bravetotrade
2
Bajaj Finance: Nice Breakout, Waiting For Follow ThroughBajaj 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 quickly drift back into the trading range. The other possibility is a genuine breakout and stock flying away to further heights. IF the second scenario plays out, the price should typically drift lower with narrow range bars and thin volume and then register another big green wide ranged bar. Lets wait and watch which scenario plays out.
NSE:BAJFINANCE
by techtrail
2
Rural Electrification: Price At Crucial JunctureThe 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 make sense to await confirmation. Until there is a strong breakout above the recent high of 217, I would be cautious in this stock. On the contrary, a breakout past 217 would have extreme bullish connotation. The will mean that 4-year long accumulation is over and the stock could then get into a major mark-up or uptrending phase. Let's watch this stock for further clues. It could offer a nice trade in one direction or the other.
NSE:RECLTD
by techtrail