Nifty took off like a Fighter Jet this week and we are now at the top end of the range again. Will it strike further or return back to the base?
- Nifty took off strongly on the first day of the week in the absence of any further escalation on the Indo-Pak border.
- Even though the subsequent follow up is missing, the last three days are sideways.
- The market is configured Bullish biased as reflected by the positioning of the EMAs. This has happened many time previously also but failed to follow through.
- Keep a SL at 10950 and Hold long position. The possibility of a bullish continuation is high.
- The ADX(7) has moved up smartly and is now above 30 means trending strongly.
- The breakout above the horizontal line at 11000 has sustained three days with negligible pull back. Short term bullish.
The Intermediate-Term Trend:
- The ascending triangle breakout on a closing basis has finally come.
- PPO is also bullishly oriented.
- The RSI has reached near the 90s region, overbought at the beginning of the breakout. A bullish sign.
All in all, with no more escalation in the conflict the Nifty should move ahead from here.