Positives
- All indicators resuming their uptrend.
- Good Relative Strength.
Negatives
- None in particular, except that we must take out the emotional 6500 Mark, which has been eluding us for a while now.
One good thing about the market is that it has broken it's downtrend a couple of weeks back. Now it is in a state of consolidation. But one must always have a very close eye on the moving averages along with support/resistance levels, because they have a major influence along with other factors. Since we are so close to 50 DMA and that we have had good rally over the past couple of weeks, we are in a sort of catch-22 situation. We want the indices to consolidate, which is good for a healthy uptrend. But at the same time, we do NOT want the indices to move back below 50 DMA. So, what do we do. Again, as we mentioned, this Coming Week would be a very crucial one. And it may decide the fate of where the market is headed in the following weeks to come.
OutlookThis should be the last week of patience. We believe the coming week would give us a clearer picture of what is in store ahead. Since the market could go either way, it is strictly advised to stay away from trading. Keep a close eye on two levels. 50 DMA and 6500 levels. If we break 50 DMA and move down, short immediately for a short-term gain. If we move above 6500 and stay there, then go long.
Source : DLNgroup