The Nifty had broken out of an ascending triangle (see March 29 post, do a search for ascending tiangle or March29. Search is on the top, right side) with a target of 5930 approx. This target has been achieved. What happens after a pattern target is achieved? There is no law which says that markets have to stop moving up once upside targets touched. But, a target has technical significane. It is likely that the Nifty will consolidate around 5930 before it begins another move, up or down.
Trend: The trend is up with prices well above 200 and 50 day averages. Trading becomes simple when we have a confirmed trend. Buy on dips, buy on consoliadtion. Expect intra day corrections since this is a move with strong momentum.
What about a reversal of trend? Well, what about it? Reversal of an up trend usually takes place when markets begin a process of distribution. There are no signs as of now.
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