Solid weekly close for the bulls..bears squeezed hard ( din't we tell you dear readers ? .. Newbies - please read our earlier posts ). The bullish engulfing pattern on the weekly chart kept on becoming stronger as the trading session progressed today. Bears were caught in a hapless situation. Bulls added on to their long positions.It has been a non-stop , breathtaking 300+ points rally from 5670 area. Not a surprise for the readers of this blog, though ; they knew all along what was coming.
Now, what would be the next move ? A little bit of consolidation ? - possible ; but the way the bulls have strengthened their grip on the situation now, a straight run to the recent high of 6120 ( pl refer chart above ) and beyond is more likely.
We argued so many times earlier ( refer earlier posts ), that bullish case scenario is the most likely one as longer term charts are in bullish mode. And in that case Nifty making all time new high remains just a matter of time. The bottom-line is - risk reward ratio is heavily loaded in favour of the bulls now. So, those who are in the right side of the market, enjoy the party !
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