Today's price action was a suppressed one. NIFTY broke out of the Top trend line during the early part of the trade, but failed to continue the same acceleration. If it has to forge ahead, it has to open above 5300 and sustain / accelerate the momentum. Will it ? I think it will. The reason… ( I normally does not look for such cues; but this time.) is as below.
Look at the hourly chart of the Euro. It is undergoing a retracement of the last drop. At present, it looks like an Inverted head and shoulders. The breakout of the trend line can give a boost to metal and other relevant sectors. Please note that, I am referring to the hourly chart of Euro and my earlier view on the Daily chart of Euro remains unchanged
This kind of a move in Euro have potential to take DOW to new highs. Needless to say, what will be the implications to Asian markets?
Hence, I think, we might see a powerful northbound move of NIFTY.
