WEDGED……
Regular readers may recollect my warning last week, advising to clear of their cash stocks and sit on cash. Hope many of you would have heeded and sitting comfortably with the profits made, unaffected by the crash.
Let us take the weekly Rising Wedge (RW) once again to assess the situation. As you can see, last week's drop just pierced the 4980 level, I had mentioned last week, but closed slightly above.
The negative divergence of the indicator (This indication was also pointed out few weeks ago) looks threatening.
The breakdown level, for next week is a weekly close below 5000.I should, anyways, mention the Breakout confirmation level of 5600, even though I see low relevance to that.
Now, looking at the Chart pattern (RW) and the negative divergence, it looks like NIFTY is heading to a minimum target of 3900, in few weeks. Do not get surprised, If NIFTY, along with global markets retest the 2008 bottom. Anything is possible
I had, for the last couple of weeks, been mentioning about a Low Risk strategy, given to the subscribers of Ftalarms. Some of you would be wondering, what happened to their trades. Cool… They are sitting pretty with near 8% gain in 3 weeks. We have given the right adjustment to them, considering the market possibility. With this adjustment they will be locking the profits and make huge gains if the market crash. They will not even loose peanuts, even if market rallies back, the profit is locked.
I had promised to give Hang Seng Chart in one of my earlier posting, which went to sell mode yesterday. I am attaching the Hang Seng Chart along with. Also, Shanghai went to sell Mode yesterday. The chart for which too is attached.
