Where is NIFTY headed? Comparison with DJIA

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Where is NIFTY headed? Comparison with DJIA

12 Mar 2020
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By Trendline Investor

@dmdsplyinvestor


Both the indices have been trading in a parallel channel for the last 12 years. The channel was created in the bear fall from '07-'09. Since then Nifty has been trading perfectly above & below the median line of the parallel channel

 

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However, Dow Jones started trading above the median line only in 2017 and has been trading above the channel since then. The median line has been an important pivot for both the Indices. Dow Jones tried to break the median line in Dec’18 and failed. But Nifty never broke the median line and the uptrend was intact until this month.  So, this median line has been the line between bulls and bears and both the indices broke down below this line decisively this week. The bears now have a clear upper hand and any move towards the median line should be sold into as bears now have a very stronghold. 

 

Two scenarios


1) We fall another 3-5% from here 2wards the first blue horizontal support in both Nifty and DJI & consolidate around 10K-11K in Nifty & 23K -26K in Dow Jones for the next few months & touch the trendline around March – April 2021 and slowly move up from there.

2) We fall another 10% quickly in another 1 month from here towards the lower trendline, which means Nifty goes down to 9400-9500 levels & Dow Jones goes to 21K-21.5K levels. From there, we reverse & consolidate for 2-3 months and start upmove towards the median line

 

This was first posted here 

https://twitter.com/dmdsplyinvestor/status/1237109199735271431

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