Market breadth still looks strong in this market. I am not seeing negative market market breadth. But I see that recent breakouts are not having strong breadth. May be market is little over extending.
But what worries me is gap up moves after such a strong move. We don't really don't want to see any gap up in this level. Gap up means we may see gap down as well. We have finally reached at the long term bearish trendline. Since November 19,2010 Nifty has reversed from this long trend line. I consider this as a major resistance.
We need to be very careful here since we just had our fifth gap up opening in 10 days.
Keep you stop close, if possible think about taking some of your profits as well.
But what worries me is gap up moves after such a strong move. We don't really don't want to see any gap up in this level. Gap up means we may see gap down as well. We have finally reached at the long term bearish trendline. Since November 19,2010 Nifty has reversed from this long trend line. I consider this as a major resistance.
We need to be very careful here since we just had our fifth gap up opening in 10 days.
Keep you stop close, if possible think about taking some of your profits as well.
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