WHAT IS MORE IMPORTANT IN MARKET DIRECTION OF TREND OR SPEED OF TREND????
AS A TRADER OR INVESTOR I THINK THAT DIRECTION IS MORE IMPORTANT THAT SPEED BECAUSE IF YOU ARE WITH THE RIGHT DIRECTION THEN ANY TIME YOU WILL BE GETTING SPEED OF THE TRNED AFTER A GOOD CONSOLIDATION, BUT IF YOU TRY TO CATCH THE SPEED OF THE TREND THEN MANY TIMES YOU MIGHT END UP WITH BUYING AT HIGHER LEVEL OR SELLING AT LOWER LEVELS DUE TO SPEED, SO TRY TO STAY WITH THE DIRECTION RATHER THAN CATCHING OR ENTERING INTO SPEED OF THE TREND, SPEED OCCURS ONLY AFTER CONSOLIDATION.
Last we said that if nifty moved below 7450 level on closing basis then only we can see good correction in market but it made 7442 level and close above 7450 and due to this we able to see up move till 7595 level.
Now with the current chart development we still see that nifty is moving in small range for past couple of weeks, which can indicate that, there is consolidation going on so we need to wait with levels for any directional movement on index.
As per the chart we can see that market is taking support on trendline now, in last session it has given a “INSIDE BAR”, and before this it has made “MORNING STAR” candle at bottom level at the starting of the week.
With the rsi we can see that price is sustaining near to specific point but rsi is still in falling zone, so this indicate a “DIVERGENCE” now.
So with the overall technical chart development we can see that market having good and big support at 7450-7430 range for now, moving below this on closing basis can give good correction in a market, any green candle here can even lead for trend reversal.
So one can consider 7430-50 range as a good support for next week, buy near to this level, if on daily basis market gives any green candle on support then hold longs for upside move till 7600-7700-7850-7950 also.
If nifty able to move and close below 7430 level then please don’t say long at all or don’t buy on fall even because this can even lead for a healthy correction in index till 7200-7050-6900 levels also.
So overall 7430-7450 is a key level for next week which can even decide the direction of market with the broader prospective.