Wednesday’s mad rally at the close and Thursday being a bulls-hit day, I being absent from desk felt relief by staying away from the markets. What happened on Friday was interesting. The market rallied again even when the Asian and European markets took a hit. That is typical of what is technically called consolidation.
One day down 6%, then up 6%, then down 5%, and finally now up 3%. If you plot it, it takes the shape of a triangle pattern showing that the market’s intraday range is narrowing around a central point. That could be 3980 for Nifty. Also it is indicative of possible intermediate bull market in the near term. For all the trend traders, this is the time to watch closely and start the next ride.
If somebody remembers, this kind of thing happened almost exactly in January after
Same thing can happen now. To ignore it or miss it is foolishness. As common sense tells that we cannot take excuses for known things.