1. Nifty is being pushed up aggressively. If we see, there has been no significant consolidation after 16k.
2. The price consolidates only for a while before giving another breakout.
3. The breakouts are not followed by any retest, which proves the fact that it is being aggressively bought up.
4. If we look at the RSI, it is continuously in overbought territory on multiple time frames. Although during strong trends, the RSI may sustain in the overbought region for extended periods. Still, it is not a good sign to be in overbought region on the majority of the time frames.
5. It is bullish at the moment but be very cautious before opening up longs because we may see correction anytime soon.
Disclaimer:This is NOT investment advice. This chart is meant for learning purposes only. Invest your capital at your own risk.
The latest break from 17430 does have retest but on lower timeframes of 15/5min. Any implications of that?
rhjain
⋅
@johntradingwick - Nifty never came to fill the gap from 16707 level and ran almost 1000 points.. strange
MrGaggi
⋅
Thanks, good one. Same feel, If you put Mean Reversion indicator currently price is beyond extreme overbought zone. Ideally it should retrace back or go side ways for long time so that mean average or deviation from mean can catch up with price.
sandeshprabhu85
⋅
All i can say is that the markets (Stocks and Indices) not just Indian but all Global markets are OVERBOUGHT, OVERHYPED and are BOUND TO FALL
Sush1980
⋅
You have got the great talent of identifying out of the box ideas. Keep doing great work. Another Editor pick.