The Bulls Charged Ahead Full Force – About to Get Tired?
In our forecast for Wed, 06/06/18, we said: “The index failed to close above that band for two days in a row, closing at 2746.87 on Monday and at 2748.80 on Tuesday. The bulls have to clear this and close above 2750 today for their run to gain momentum.”.
As if taking the cue from our report, the bulls charged ahead full force on Wednesday and pushed the index way above the 2750 level to close at 2772.35!
Model Biases/Outlook:
Both the medium-term and short-term models indicate strong bullish bias. The medium-term forecast published 16 days back and repeated for 16 days straight, as mentioned in our intraday alert last week on 5/22, “2680 has to be broken for the models to turn bearish” is now being shifted upwards and the medium-term models now indicate switching to a slight bearish bias if the index falls below 2740 on a daily close basis.
Trading Plans for Thu, 06/07/2018:
Medium-to-long term investors
Medium term models went
long on Wednesday at
2754,
as per the trading plan published for Wednesday: “the models indicate staying flat below 2753, and buying within 2753-55 range with tight stops”. Models currently have a
stop-loss at 2760.
The models indicate no short bias until at least a daily close below 2740 (slightly bearish) or below 2735 (outright bearish). Models indicate staying flat (no positions) between 2760-35.
Aggressive, short term, intraday, or professional traders
Aggressive, intraday models have done very well on Wednesday, trading long about 2750 and never going short as the level of 2740 was never breched! For Thursday’s, the models indicate trading from the long side above 2765 and from the short side below 2750. Use tight stops when selling short even below 2750 as we need to keep in mind that we are in bulls’ territory!
IMPORTANT NOTICES & DISCLAIMERS – READ CAREFULLY:
(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
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