Nifty extended its breakout on the 5th day above 5750 with higher volumes and neutral breadth.Important points for today.
1.Nifty up by 2.1% with 1.1 breadth.
2.78th day of rally since the lows of 4786(33 days of downturn).
Nifty has shown good momentum on this breakout.But the breadth is not supportive of the momentum.Upside pattern potential is for a target of ~6000.Beyond that,I cannot come up with any possible pattern/scenario.Given the momentum Nifty is exhibiting,I expect Nifty to go to its maximum target probably in next 2-4 weeks.Also the breakout can be a shakeout for the bears before the downleg starts.Since the correction in a sharp upward momentum will also be sharp,so start of downleg will be difficult to know initially.Breach of previous swing low of 5350 will be critical point for the downswing.
No comments:
Post a Comment