The Nifty posted its third consecutive weekly positive close last week. The daily chart shows that price action over these three weeks is characteristic of a pullback. This means the move has multiple overlapping structures and is unlikely to develop into a larger rally. The daily Bollinger Bands have flattened over the period, which caps the upside at the upper band.
On a higher timeframe - monthly chart, the Nifty has formed a Doji pattern for May. A Doji is a sign of exhaustion in the market. Thus, we are likely to witness a correction unless the high of the Doji pattern (10,929) gets taken out.
Read more--Stocks update
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