Trendiv

Vertical rallies are unsustainable and lead to a crash. Hence, it is good that the rally stalled. The present correction is likely to find support at the resistance line of the ascending channel. The trendline,  green color on the chart, also coincides with the channel support. So, I expect the zone of $8,750 to $9,100 to act as a formidable support. If, however, the bears succeed in breaking down this support, the 20-day EMA at $8,530 will act as the next support, below which a decline to $ 8,000 is possible. On the upside, yesterday’s high of $10,570.49 and the lifetime high of $11,420.82 will act as a stiff resistance. The volatility is likely to remain high for another four to five days when both the bulls and the bears will try to establish their supremacy. Thereafter, I expect the volatility to subside. The risk to reward ratio in the current volatile environment is not conducive for trading. Hence, I don’t recommend any trade today. It is better to stay safe and pres...