Markets lost as expected after touching the upper trend line and as we mentioned in our last post yesterday . European markets are bleeding and down by 2-3% today as we write this.
However if we look at the Nifty charts today, the candle today is again forming a cross or a doji as its called in technical analysis. Two consecutive doji like formations, signal only one thing, that the market is unsure about its direction. Pl see the chart below:
The things to note about today's chart is that MACD crossover has finally happened, which is bullish, marked by circle in lower pane. Also pl see that the upper trendline has proven to be a resistance to price as we noted in our post yesterday.
Basically, when the market is unsure about the direction, lot of traders pull out briefly so be ready to see a few red candles signalling temporary pullback in nifty.
Overall we are still in the bullish wedge, but prices has dipped below 50 SMA briefly. The next candle is giving a technical signal of a big red candle appearing soon, but don't be surprised if you see a huge green candle on Friday, breaking above the wedge.
One thing to note today is that market internals were not significantly bearish with advance decline ratio close to one. Market is evenly poised right now and next candle is gonna suprise some of us. Happy trading and investing!
However if we look at the Nifty charts today, the candle today is again forming a cross or a doji as its called in technical analysis. Two consecutive doji like formations, signal only one thing, that the market is unsure about its direction. Pl see the chart below:
The things to note about today's chart is that MACD crossover has finally happened, which is bullish, marked by circle in lower pane. Also pl see that the upper trendline has proven to be a resistance to price as we noted in our post yesterday.
Basically, when the market is unsure about the direction, lot of traders pull out briefly so be ready to see a few red candles signalling temporary pullback in nifty.
Overall we are still in the bullish wedge, but prices has dipped below 50 SMA briefly. The next candle is giving a technical signal of a big red candle appearing soon, but don't be surprised if you see a huge green candle on Friday, breaking above the wedge.
One thing to note today is that market internals were not significantly bearish with advance decline ratio close to one. Market is evenly poised right now and next candle is gonna suprise some of us. Happy trading and investing!
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