Market appears to have carved out a W-bottom also known as "Double Bottom". Earnings season has started, which shall provide further direction to this uncertain market. What should we expect in weeks ahead!!! BPNYA has managed to cross EMA(30) while Volatility ($VIX) appears to be subsiding below 20 mark. However, we are not out of the woods yet and we need to remain cautious. Daily NYSE chart is displaying W-bottom, however observe the area between 10350-10600 where we shall see significant resistance on the way up. As long as, market can remain above MA(50), this market has hope to change the trend but it won't be easy. Weekly chart shows us that market found support near 10000 area, any bounce effort shall experience resistance near 10800 area if at all the current rally continues further. RSI still below 50 mark and MACD has yet to crossover. NYUD is still below EMA(21) while RSI is below 50 mark, both suggesting to remain very cautious about recent bounce effort. Charts are telling us that the bounce is very impressive, but to sustain it will not be easy as market will have to overcome significant resistance on daily/weekly charts. BUT if market does manage to sustain current rally then it might prove to be beginning of the next major rally. However at this juncture, it will be wise to remain very cautious.
What does it mean for our Investments?
Market remains in correction, stay on side lines... Comments are closed.
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