Is another major correction on the corner ?

aad · #1 15th August 2006, 01:14 AM

Dear all,

We all see a bullish sentiment across trading community for last few days. As I see it however, although there is uptrend in sensex as well as nifty. there is bearish divergence in many heavy-weight stocks (like ACC, Alembic, Bharti, Cipla, ONGC to name a few - I found it in as many as 70 stocks for 20 days time-span) in especially MACD as well as bull-power, in many stocks. Even Sensex and Nifty show heavy bearish divergence at current levels (on 14.08.2006) on MACD.

This uptrend is still not supported / confirmed by volumes which means that people are still cautious (or they are waiting for another correction ?).

Can we conclude from above that another heavy correction is on the corner ? I guess so. Since I always consider myself a learner and I know it for sure that there are many more much experienced souls in traderji community, can someone comment on my views ?

Thanks in advance,

Abhay (AAD)

AJIT14 · #2 15th August 2006, 07:39 AM

Quote:

Originally Posted by aad

Dear all,

We all see a bullish sentiment across trading community for last few days. As I see it however, although there is uptrend in sensex as well as nifty. there is bearish divergence in many heavy-weight stocks (like ACC, Alembic, Bharti, Cipla, ONGC to name a few - I found it in as many as 70 stocks for 20 days time-span) in especially MACD as well as bull-power, in many stocks. Even Sensex and Nifty show heavy bearish divergence at current levels (on 14.08.2006) on MACD.

This uptrend is still not supported / confirmed by volumes which means that people are still cautious (or they are waiting for another correction ?).

Can we conclude from above that another heavy correction is on the corner ? I guess so. Since I always consider myself a learner and I know it for sure that there are many more much experienced souls in traderji community, can someone comment on my views ?

Thanks in advance,

Abhay (AAD)

Hi,

I think so, so we are not takng part in this part of c of abc,as following it we expecting a " C " wave of correction.

so wat is good for shorting in coming wk.

Thanks
Ajit14

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