Yet another time in last year and quarter, NIFTY is at cross roads. The channel in which NIFTY has been moving is way too long now and a break out is imminent. As the current situation stands, NIFTY is at stone's throw distance above 200 EMA, about 100 point short of upper channel. RSI is at a level not seen since last 16 months and MACD is also showing considerable divergence.
Now, all of this does not mean a damn thing. Markets have a long history of proving predictions less worth than the paper they are written on. We will just see the facts here.
On the positive side, 'Monty', Italy's Prime Minister, is hopeful of a longer lasting solution to Europe Crisis and I want to share his optimism. Next couple of days are extremely crucial and will make or break Europe literally and figuratively. May be a larger post on Europe is called for. Will write one soon.
On the flip side, if anybody of you follow cycle theory, then we are due for a short term bottom in last week of Jan or first week of Feb in American Markets. Also an intermediate degree correction is due in March-April time. Cycles have been known to follow much more predictive behavior and I will not rule out NIFTY following it to start it's journey towards the bottom of the channel.
Before I close this post, few stocks have already broken out of their channel. See one below.
On the positive side, 'Monty', Italy's Prime Minister, is hopeful of a longer lasting solution to Europe Crisis and I want to share his optimism. Next couple of days are extremely crucial and will make or break Europe literally and figuratively. May be a larger post on Europe is called for. Will write one soon.
On the flip side, if anybody of you follow cycle theory, then we are due for a short term bottom in last week of Jan or first week of Feb in American Markets. Also an intermediate degree correction is due in March-April time. Cycles have been known to follow much more predictive behavior and I will not rule out NIFTY following it to start it's journey towards the bottom of the channel.
Before I close this post, few stocks have already broken out of their channel. See one below.
Will write more soon and will write about trades (if I can spot any opportunities) soon.
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