A WARM HELLO AFTER A LONG TIME. I am writing to you after a long time.
Hope you all are fine, if you are not trading at this time in the market :)
It is very confusing market.The 3 days sharp run up, 2 days sharp fall. FIIs buy and suddenly sell off, critical times in foreign economies and critical times at our end too, and what not..!
As a technical analyst, what I see is our market is moving in a channel, which is trending downwards.So each top is lower than earlier top and each bottom lower than the earlier bottom. If one can find this and trade within the channel, it is beneficial. Today, the sensex touched the highest point moving in the channel so it is bound to move downwards also it is trading in overbought zone so some sell off will definitely come in a day or two for any reason known or unknown.As predicted earlier some months back, market is sure to touch earlier bottom. It is worthwhile to watch at sensex reaching 14500 or so , whether it falls further making new bottom or breaks channel and starts rising again. One should be careful and not be trapped in bear market rallies.
Wish you happy trading,