Every Stock has a story to communicate via charts. There is a lesson in every price action.
Nifty Breaks out above 7973
There is no resistance that can stand in way of Bullish market. Sooner or later - resistance gets crushed and bulls march on.
Will S&P 500 breakout to new high
Adjusted for inflation, the S&P 500 was 2,131 in March 2000. In other words, you could say 16 years without a new high.
— Ryan Detrick, CMT (@RyanDetrick) May 27, 2016
Will Gold breakdown below 50 dma/ $1200?
A rate hike can puncture all the bullish argument for Gold.
When asset is in downtrend - they can make a sharp comeback only to decline again.. If Gold does break down below $1200, then this would be the biggest lesson for everyone. Selling below $1200 will lead to more selling and panic in Gold.
There is only one strategy that works when stocks are in downtrend. The strategy is Avoid
Here's ONGC Chart
Just see the extent of correction, ONGC stock had to undergo despite overall bullish market environment
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Disclaimer – The state of the market notes is Deepak’s perspective on the market. The column is purely for educational purpose. Nothing contained herein is a solicitation to trade or a recommendation of a specific trade. By reading this publication you agree to make no trade relying in whole or in part on the comments of the writers