After some sideways
move on low volume today the index showed sign of bullishness. The index opened near historical high and soon
we saw supply coming in taking it down.
However in the latter half of the session demand dominated the show to
take the index back to near the open. We also saw the volume increase to a
month’s high.
Today’s Bar resembles a dragon fly Doji though not an ideal
one as the high was a trifle higher than the open. Normally a dragon fly doji after an uptrend
would indicate of a trend reversal. Here the Doji is happening after some
consolidation albeit after an up move.
Hence the reversal loses all significance. What is important here is the dominance of
Demand and that too quality demand. Also
we need to notice that sellers are very active though they gave in to demand
later on. Overall, today’s move is
indeed a sign of strength and we should see the index seeking higher levels.
No comments:
Post a Comment