Hello Traders
NIFTY50 closed the week @ 12352.35 and moved above last weeks high, which was a „hammer-candle“ and it is bullish. Any price action below the hammer´s candle low @ 11929.60 open the door to much higher price still, `cause a hammer candle reflects 3-5 weeks (at this case) of advancing price. This weeks high touched the upper rising trendline, blue, and closed above the high of last week's candle. So, a pop above 12389.05 is the door opener for new ATH in the coming days and weeks.
Let us consider the a/d-ratio as per Friday`s close, it was just tame @ 1.03 for the NSE
www.traderscockpit.com/?pageView=h... ! I think this ratio is important to watch. Because a nearly flat ratio at a new ATH is not what I like to see at this point.
The TRIN popped this week to 3.202 (Friday) and indicates possibly overwhelming optimism for advancing price! If so, such behavior at this point at chart will alert us for a possible correction at a larger degree, maybe more.
For now, there is no such sign to observe, but as always. Nobody will knock at your door and tells you:“..Hey, a crash is just around the corner“!
Always expect the unexpected and be patient these days.
At the 2-hour chart, you will observe price action at or close above the rising red trendline, that connects the late October 2018 low and the mid-February 2019 low. Price popped on January 9 above the line and holds above this line since then. So, any trading above is bullish, while a correction has to end 12027 on a daily basis (closing price) at a minimum. As you know „round“ numbers as the 12K level often act as a magnet for price. Note this!
On the other hand and as before. `Cause of the weekly hammer-candle a phase of 3-5 weeks of advancing price is possible, as long as the low of the candle @ 11929.60 is valid. A close below this area is a failed buy-signal and these are more often than not a good sell-signal.
Keep that in mind.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
NIFTY50 closed the week @ 12352.35 and moved above last weeks high, which was a „hammer-candle“ and it is bullish. Any price action below the hammer´s candle low @ 11929.60 open the door to much higher price still, `cause a hammer candle reflects 3-5 weeks (at this case) of advancing price. This weeks high touched the upper rising trendline, blue, and closed above the high of last week's candle. So, a pop above 12389.05 is the door opener for new ATH in the coming days and weeks.
Let us consider the a/d-ratio as per Friday`s close, it was just tame @ 1.03 for the NSE
www.traderscockpit.com/?pageView=h... ! I think this ratio is important to watch. Because a nearly flat ratio at a new ATH is not what I like to see at this point.
The TRIN popped this week to 3.202 (Friday) and indicates possibly overwhelming optimism for advancing price! If so, such behavior at this point at chart will alert us for a possible correction at a larger degree, maybe more.
For now, there is no such sign to observe, but as always. Nobody will knock at your door and tells you:“..Hey, a crash is just around the corner“!
Always expect the unexpected and be patient these days.
On the other hand and as before. `Cause of the weekly hammer-candle a phase of 3-5 weeks of advancing price is possible, as long as the low of the candle @ 11929.60 is valid. A close below this area is a failed buy-signal and these are more often than not a good sell-signal.
Keep that in mind.
Have a great week...
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!