❓❓ THE BIG QUESTION ❓❓
⚠️ ⚠️⚠️"What will happen tomorrow to Markets?"⚠️⚠️⚠️
Everyone I know predicts how the market will perform "Aaj toh lag raha upar jaayega"
This is a perfect recipe for Losing all your capital. 💰
Technical Analysis is a study of Price Action, Volume, and Trends. So, I won't predict how the market will perform tomorrow, but looking at the Daily chart of NIFTY50, I will make some observations and go about my day. 🎯🎯
The chart attached has been analyzed on a Daily TF and the indicators used are EMA10 and Stochastic RSI.
As we can see on the chart, Nifty is making a Hanging Man - this type of candlestick, if formed in an uptrend and at resistance, signals a reversal of the trend. Thus, the market can have a reversal in upcoming sessions.
Now, the question stays till where will the market reverse?
Here, the indicators help, and we can see that historically NIFTY50 has respected EMA10.
The market trades in line with EMA10, and when there is any deviation, the market reverses till the EMA10.
Thus, according to the data, the market should reverse to 17100 levels for a sustained rally.
Also, looking at the momentum indicator - Stochastic RSI, we can see that the market is in the overbought zone and the trend is falling, which is a bearish signal.
To learn more, keep following me!😄
@hari-BJkpH8Ra9 Hey, the Tf differs for the type of trade you wish to take, so analysis can be done on any tf, but doing it on Daily/Weekly is preferred as it gives good direction and shows the trend of the stock
@rahulbora Okay, so I took EMA10 because as EMA gives most recent price more weightage and I am of the view that 10 sessions (i.e. 2 weeks) movement shows better correlation to movement, one can also use EMA21, but I saw that price reverts back to EMA10 on a constant basis when I...
@neerajb See, in Technical Analysis or we can say Stock markets , there are 3 major assumptions - 1. Market moves in trends 2. Past repeats itself 3. Market discounts everything, so hike of 50bps was expected by everyone since a long time, so that information was already discount...
The Little Book of Trading: Trend Following Strategy for Big Winnings this is also a good book for anyone wanting to learn about the psychology of trading - i guess its by Michael Coval. Its worth reading.
@bale11 Yes and even the GOI is looking to increase their kitty through divestment so possibly (in 2023 or 2024 Budget month) they will sell some of their stakes in these PSUs unlocking major synergy for these companies.
Always available to teach, mentor, and learn together about markets.
The above analysis is for EDUCATIONAL PURPOSES ONLY. I should not be held responsible for any loss incurred from the BUY/SELL of the analyzed asset. Do consult your Financial Advisor before taking any trade.
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