Hi All,
Nifty Nearing it’s all time high made in 2015
There was a 2 year consolidation after move from 4500 to 9100 between Jan 2012 to march 2015
Now we are at 8670 and around 5 percent below our all time high
There are cautious alert already made by fundamentalist to call it too high to substantiate the valuation but fact is fundamental will follow the price
As a trend followers we don’t want to take a stand but follow the market
Below is trend analysis
As per technical analysis there is a Bullish flag pattern formed between Jan 2012 to April 2016 Period as shown in the chart
The length of Flag pole was around 4500(9100-4600) points and the consolidation was around 1500 (9100-7600) point
The Trend continuation started in 31/05/2016 at 8200 itself and started to rally till 8900 on November but Demonization and Trump news led the market downfall but negative sentiment seems to fading and we are back to our long term up trend
So what is what is target? We don’t want fix target since no one knows that
But if we have to predict as per technical analysis it’s the length of flag pole (4500 points) from flag break(7600) it will come around 12000,yes you read it correct
It’s expected that nifty will see its resistance at 8900 and 9100 in the near term but we are in long term uptrend so need to trail our SL appropriately
Chasetrend
Disclaimer: We are a system trader so we adjust our position as per system signals
Its written for study purpose I am not a qualified analyst as per SEBI standard