Market has managed to stay in a narrow range from last two months, however soon it shall make a directional move. BUT what is the most probable outcome to be expected at this juncture? Below chart shows BPNYA below EMA(30) and Volatility ($VIX) all over the place. When market is range bound, BPNYA does not work very well and often provides whipsaw signals. Range bound action is very visible in below daily NYSE chart. If market breaks down below 10350 level then it is very likely that it will visit 9900-10000 level. A break out above 11100 level will require significant push. Resistance building at 11000 level can be seen in below weekly chart NYUD is also not providing good signal when market is range bound however key thing to watch here is NYUD making NEW HIGH if market breaks out. As of now, NYUD has dropped below EMA(21) and RSI is also below 50 mark both suggesting caution and further probability of drop in the market. Charts are telling us that path of least resistance is on downside which means it is very likely that this market may take a tumble here in coming days/weeks ahead, hence be cautious.
What does it mean for our Investments?
Market could take a tumble here, be cautious... Comments are closed.
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