NIFTY Index Chart Analysis

IS THE RALLY FOR REAL?

The domestic equity markets have rallied for the third straight week. In the process, Nifty has erased five weeks of losses in just three weeks, which is just 60 per cent of the time (near Fibonacci number 61.8 per cent). The price pattern looks like an eight-week cup pattern breakout. The previous week’s Bull Flag pattern breakout has met one-third of the target. As mentioned earlier, the most positive aspect of this rally is higher volume, which shows the trustworthiness of the breakouts. As the index is in uncharted territory, it has cleared all its resistance.