Wednesday, January 13, 2016

Bulls are Back ? ? ?

Hi All,

As expected the Rickshaw Man Pattern worked and Nifty gave a huge movement on the upside after rightly taking support near the mentioned level of 7420....

Today’s pull back though very strong is not very convincing as the market breadth, i.e.the  Advance Declines ratio is very poor and somewhat depressing for bulls at 280:1300 roughly also, other than this even the volume as of now is also on the lower side and hence it is advisable that we wait for tomorrow for calling it a  “CONCRETE CONFIRMATION” as mentioned in earlier posts.

Other than these two factors a complete credit goes to bulls for their efforts to take Nifty out of the bush by almost 150+ points.

As per the levels mentioned earlier first target below 7540 was of 7420 and it seems to be achieved and Nifty has pulled back up, a sustained rally like this and a Hammer Pattern on the Daily charts (provided Nifty closes at the current levels) can suggest a pull back.

However, tomorrow’s confirmation is required to know whether the pullback is just a relief rally or a short term reversal.

Will update you all on today’s closing


Cheers

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