Wishing Dear Readers a very very happy and prosperous and profitable new Year.
Regular Post will start publishing from Saturday. Traders’ Resolutions for New Year-2016
2015 year started with a Bang with Nifty clocking a gain of 6.35% in Jan Month but as per Gann Yearly cycle we made a High of 9119 04-March-2015 which was the Top of market when RBI gave the surprise rate cut and came down till 7539 08-Sep-2015 and closing the year with a loss of 3%. We can consider 2015 as year of consolidation after Nifty made heft gains off 28%i 2014 riding the MODI wave. Quarterly and Yearly chart of Nifty are shown below.
Yearly chart have formed an Spinning Top candlestick
A Spinning Top indicates a strong fight going on between the bears and the bulls. The bulls are giving it their all, as are the bears. Nobody has won the fight yet, so the candle closes near to its open price.Open of Nifty was 8273 and Close was 7947.
If a Spinning Top appears during a bullish trend it suggests that the bulls could be losing control, and the trend could be ending. This is because until the spinning top formed the bulls had a very strong bullish trend. The spinning top suggests to traders that the bears are fighting back and the bulls are struggling to continue the bullish trend.
Next Year will be very important Year as we will be completing the 8 year cycle and will also see if Spinning top will show effect.
Quarterly chart have formed an DOJI and Inside Bar candlestick suggesting next quarter we should see good trending move in market, Breakout above 8336 and Breakdown below 7551 for a move of 500+ points.
Monthly Chart with Supply and Demand Zone
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