A Breakout? A Shakeout? A false move? Or simply the End Run? Well a break out did happen (we broke above the previous resistance!) but whether it’s sustainable or not is a different story. Posting the daily and the hourly chart below and YES the negative Divergence is screaming short but the PRICE isn’t! And when does the price confirms this…well now for starters the failure to hold to previous highs (see those red ellipses) would be the first signal and then of course failure to hold to our most latest support we dug out at 4580 would be another hint! Well you can add the trend line breaks too (I know trend lines are pretty subjective but then that’s the truth with them and most of the patterns!).
I guess till then it’s the classic case of “Innocent till proven guilty” we just need to believe in the existing trend till proven otherwise (this may happen in a day…a week or a month!). This reminds of a quote by Michael Kahn “If the market does not want to go down, no amount of bad news going to drive it lower. To put it in economic terms, demand will overcome supply, so leave your logic at the door.” Another columnist Michael Santoli adds to it further by saying “Like a referee, the market doesn’t have to give an explanation for decisions; its verdicts is all that counts.”
While you are at it I would recommend reading an old post here!
1 comment:
HI
whatever out does one needs to be IN, nifty being well managed by RIL(King) breakout post previous top rest nifty pivotals need to support for further continuation. Keep an eye on them
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