Milan Vaishnav, CMT, MSTA, was featured in India’s Economic Times on Wednesday with some timely insight amid a broader period of global consolidation.
“Pattern analysis shows Nifty had ended outside the upper Bollinger band before, [in the prior] couple of sessions. This signals resumption of a fresh uptrend or continuation of the current trend. At the same time, there was some possibility of the Nifty pulling back inside the band. This is what we are witnessing currently, and the index continues to be in a period of consolidation. Given the current chart structures, we expect this consolidation to continue,” Vaishnav wrote, as illustrated by the chart above.
“We will continue to see Nifty consolidate in a defined range. […] Shorts should be avoided as the undercurrent remains buoyant.”
Read the full article here: Nifty outlook: Protect profits, avoid shorts.