Last week has been the best market performance in last two months. Earlier market broke MA(200) signalling further bearish sign but recovered immediately and currently cruising towards MA(50) line. BUT, Is this move for real or mere trap!!! BPNYA remains well below EMA(30) hence no signal was triggered last week. Market remains in correction mode and needs more time to stabilize. However, volatility appears to be subsiding which provides an opportunity for market to gain strength. As can be seen from below daily NYSE chart, market is near MA(50) line which could act as resistance. Unfortunately, volume remains low during last weeks move which is a concern. Expect consolidation or sideways action or pullback to MA(200) line. Market behavior at this junction in next two weeks will pave the path for next market direction. Typically market can spend sometime bouncing between MA(50) and MA(200) and will require a major news to push it beyond those boundaries. Weekly NYSE chart looks encouraging, last week it seemed like market broke the support trend line but now we can see it has bounced back up. Is this start of a new BULL run?
What does it mean for our Investments?
Market in bearish mode, be alert and patient... Comments are closed.
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