Wednesday, November 27, 2013

Lower Highs are Bearish

Often, the best analysis is the simplest. Basic technical analysis tells us that lower highs and lower lows are a bearish pattern. This makes a lot of sense. If prices fail to cross previous highs then the bulls are losing strength.

Sometimes, this lower highs pattern is just a correction in an ongoing bull market. This is what makes markets so exciting - we have to develop our own skills to decide what is a correction and what is bearish.

The Nifty, to me, is giving a pattern of lower highs with a flat support line at 5975. This is not bullish at all.

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I will be in Hyderabad on December 7. Readers who stay in Hyderabad are welcome to meet me. Please email to sudarshansukhani@gmail.com

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