And the markets crossed the 78.6% level in style! The upswing after covid is a trend. Not a correction. A proper trend.
Long Term: In long term, the fact that the rebound was a trend is established and the NIFTY breached the 78.6% level of the decline in March. That is bullish.
Medium Term: In the medium term, we are actually close to the medium term maxima of 11,800-12,000 levels. As with every local maxima, there is expected to be a correction after this.
Short Term: In the short term also the market seems to be in the first leg of an internal wave 2. We will have to watch how this wave 2 pans out. Looks like a zig zag. I am not able to ascertain if it is going to be a simple correction or a combination. But either way, looks like correction is coming.
How would I trade this? I would wait for a good buy level around 11,650. If you don't want to do the waiting game, then short at market open tomorrow. Profit target 11570 (profit of Rs. 6458.25 from Friday's close). Stop Loss of 11740 (loss of Rs. 6416.25 from Friday's close).
Long Term: In long term, the fact that the rebound was a trend is established and the NIFTY breached the 78.6% level of the decline in March. That is bullish.
Medium Term: In the medium term, we are actually close to the medium term maxima of 11,800-12,000 levels. As with every local maxima, there is expected to be a correction after this.
Short Term: In the short term also the market seems to be in the first leg of an internal wave 2. We will have to watch how this wave 2 pans out. Looks like a zig zag. I am not able to ascertain if it is going to be a simple correction or a combination. But either way, looks like correction is coming.
How would I trade this? I would wait for a good buy level around 11,650. If you don't want to do the waiting game, then short at market open tomorrow. Profit target 11570 (profit of Rs. 6458.25 from Friday's close). Stop Loss of 11740 (loss of Rs. 6416.25 from Friday's close).
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Market opened above stop loss levels