4 Characters of Bull Markets Correction
Technical Analysis and Market Outlook
(21-01-2015)
Technical Analysis and Market Outlook
(21-01-2015)
Nifty-Intra Day Chart (20-Jan-2015):-
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| Just click on chart for its enlarged view |
1- First 4 hours consolidations between 8575-8620
2- Strong 100 points rally in last 2 hours
3- Whole day actual trading between 8575-8707
Conclusions from intra day chart analysis
Following line was told on 19-01-2015 in "Fresh Rally continuation after Pennant Pattern broken out Confirmations"
some more consolidation is firstly required for fresh up moves above all time highest.
Nifty consolidated first 4 hours between 8575-8620 and after that new life time formation above 8626.95,then strong 100 points rally was seen in last 2 hours.
Following topic was posted on 12-01-2015
Nifty will give First Strong Indication of Next Big Moves from Pennant Pattern Break Out
As Pennant Pattern formation therefore Wave'C' failed after RBI Repo rates cut and Pennant Pattern broken out after huge gap up opening.
Nifty sustained 3 days above Upper line of Pennant and higher levels consolidations was also seen in intraday charts of 19-01-2015 therefore 'Pennant Pattern' broken out got confirmations and we posted following lines on 19-01-2015 in "Fresh Rally continuation after Pennant Pattern broken out Confirmations"
1- fresh rally after correction completion confirmations
2- emergence of fresh rally expectations after last 31 sessions correction completion.
3- expected that rally will remain continued:-
As was told 100% same happened and strong 144 points rally was seen yesterday.
All trends are up and Indian markets are so Bullish that 2693 points rally corrected only 665 points as well as corrective Wave'C' failed. Certainly fresh rally starting confirmation and Indian markets are trading in new zone as well as no selling at higher levels therefore rally will remain continued. Following 4 characters of such Bull markets should be kept in mind:-
1- Such Bull markets reuqire complete selling patterns on EOD charts before any big correction.
2- Such Bull markets completes its correction after intraday or 1/2 sessions dorn moves.
3- Such Bull markets completes its correction side markets with minor moves also.
4- Such Bull markets completes its correction at higher levels also without any down moves if any positive new flow.
As very short term Oscillators are overbought after also last 4 sessions strong rally therefore minor correction may be seen any day but finally rally will remain continued.