❓❓ 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!😄