Will the Channel Prove itself Again?

Will the Channel Prove itself Again?

Nifty shows early signs of exhaustion after a series of positive daily closes. At yesterday’s session, the index slipped after teasing the psychological level of 12,000. Surprisingly the index faces this early resistances from the same old channel which lead the erstwhile sell-off in mid-September’20.

Considering the underlying trend and momentum I do not see a serious sell-off from current levels but a short-term price correction is very likely which is healthy for the over-all UP trend. The sell-off of mid-September’20 came after a short-term bounce back in a down trend. But the current market situation is a lot different from that. So I do not expect any sharp sell-off, but some price consolidation for sure.

Trade Well. Trade Wise.