Markets have taken off into a brief bullish run since 3 days now, but, how long this bullishness is expected to prevail is a question on all traders mind. Is this a rally to trap innocent traders off their valuable investments? Based on the chart patterns of NIFTY on the weekly, it did not make a new low, where as it took off from somewhere close to the range low, this fairly indicates that the broad based sideways pattern is likely to continue for some more days.
At present 5200 is a possible strong resistance area, Nifty can turn around from there. Traders having long positions may have to keep a strong watch for any signals of weakness setting in into their positions and act on it as early as possible to avoid major damage to their trading accounts.
Most of the front line stocks have gone sideways and do not have trend on either bullish or bearish side. There are very few strong stocks at the moment. A trader to make returns in this turbulent market has to be smart enough to identify the best stocks and trade them, still with total alertness. Any kind of small negative news will pull down the weaker stocks into a high volatile bear move.
Even at this juncture there are few good stocks that have been giving consistent entry and target exits. As of now the market has taken off from its bottom for these super strong stocks and all are trading high. The next time our train stops at its station, make sure you load on with the best ones and go along into its next journey.
At present 5200 is a possible strong resistance area, Nifty can turn around from there. Traders having long positions may have to keep a strong watch for any signals of weakness setting in into their positions and act on it as early as possible to avoid major damage to their trading accounts.
Most of the front line stocks have gone sideways and do not have trend on either bullish or bearish side. There are very few strong stocks at the moment. A trader to make returns in this turbulent market has to be smart enough to identify the best stocks and trade them, still with total alertness. Any kind of small negative news will pull down the weaker stocks into a high volatile bear move.
Even at this juncture there are few good stocks that have been giving consistent entry and target exits. As of now the market has taken off from its bottom for these super strong stocks and all are trading high. The next time our train stops at its station, make sure you load on with the best ones and go along into its next journey.
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