USDINR has an interesting monthly pattern. For 10 months in a row, it is one timeframing without breaking previous month lows that shows the confidence of larger timeframe players. It is a straight upward one-sided rally. All-time high comes around 74.528. Current swing move from 63.10 to 74.528 which is roughly 18% of swing move. The entire move comes from the year 2018 along.
Nifty Futures continues to survive minor negative waves. The immediate short-term trend is positive with supports coming in 11713-11720 range. Global Markets sentiment ended moderately positive except the European indices on last Friday. Key economic indicator India Q1 GDP growth soars to a 9-quarter high of 8.2% Vs 7.7 Quarter-on-Quarter basis. This is the highest growth in two years and strongest since the first quarter of 2016.
Nifty Futures closed with a negative note despite evading Turkish Lira and Chinese & slowdown fears. USDINR is currently trading around 70.30 hits a fresh all-time high on 16th Aug 2018. Nifty Futures trading sentiment and market profile sentiment holds negative with immediate short-term resistance around 11450.
“How to draw a trendline” is one of the first things traders and investors learn when they study technical analysis. Typically, they quickly move on to more advanced topics and too often discard this simplest of all technical tools.
Silver is firmly trading very close to the previous swing high 16.90 and the daily sentimental RSI continues to be positive for the 15th trading session and currently consolidating around the previous swing high reference. .
EURUSD on the monthly timeframe trading in a larger balance between 1.0482 and 1.145 (rough estimate) since the start of 2015. Its been more than 2 years and EURUSD is trading is the tighter range on the larger timeframe. On the lower side 1.048 offers a longterm support which is also the bottom of the balance. Highly compressed trading activity is seen in the last 4-5 trading months
Nifty had done a “W” shaped price pattern so far during Nov 2016 to till date which is very much visual from the charts. Currently price is trading around the Intermediate resistance zone 8315 levels as Sentimental RSI is currently at the extreme. Previous Top Down Analysis indicates that still price is showing a consolidation pattern in both Daily and Weekly Charts.
All right, its time to tackle some important questions and controversies. Do cycles exist in financial markets? Even if they exist, can we trade them profitably? Perhaps it’s often debated only on first scale and completely ignored on second scale basis. Let me take a dip into the topic and some insights alongside.
Recently, Indian govt announced a particular scheme in their budget notes which took a lot of attention, especially gold merchants and speculators. With gold prices tumbling since last couple of years, the new scheme-if it works, would not only increase the supply of precious metal at domestic level, in-turn cuts our international gold imports which further depresses the price at global scale.
In My last article, I mentioned about trading budget and market related to budget. In this one I will shed light on the stocks in my radar screen which I feel would provide some trade opportunities post budget.
Banknifty future from chart above looks like making a head and shoulder formation which is in its last leg of forming the right shoulder (which it should, to become a valid pattern). As per the chart above 19450 is tough line of resistance for bulls only once this level is sustained close basis the next up leg shall begin, till that the bank nifty is sell on rally and around 19000 there is a strong support from where it becomes a buy towards this resistance again.
Yeah, if you believe that I am good at writing controversial articles, I can’t say no. But while doing so, I try to expose real face of the markets and some of the most used conventional wisdom which is nothing but just a useless trap. Today let me stir a bit on Chart patterns and why the so-called “Patterns” are useless to make money. Before doing so I would like to warn the average reader that chart patterns are useful only if you’re making money out of it or else throw them away.