In our last post on 3 Jan 2019 Nifty on the fence – Bull or Bear? we suggested the possibility of weakening in the bullish case for Nifty. The market continues to be sideways within a narrow range. The Full STO & PPO is negative.
Markets have broken down from the rising wedge as anticipated in the last post. The downside breakdown is the logical pattern outcome and today’s gap up and close has sort of done the “testing the trendline” thing. BUT the VIX crossover is yet to come which will confirm the breakdown.
On the other side if Nifty rallies above 10900, it will be super bullish as failed patterns normally yield good results in the opposite direction.
On the weeklies, both the PPOs are still positive and the status quo is maintained.
But remember Boring markets ALWAYS surprise !!