Monday, August 18, 2008
Nifty Breakout was Fake?
When all analysts were singing the breakout song, I doubted it (see this and this ) and then the confirmation of my doubt came true when I saw big divergence between Nifty and Nifty Futures and now we see it happening, the indexes both Nifty and Sensex collapsed yesterday and today.
Look at the Nifty Futures Daily Chart, the Main Downtrend Line is firmly there and the latest Uptrend Line has been breached decisively. This has confirmed my earlier view that we are in a primary Bear Market and the rallies that are there are just countertrend ones.
Also, for US Markets, the primary downtrend has resumed today again, as I was expecting last week.
Happy Trading and All the Best...