The stock market is a mystery. Sometimes it makes sense and it seems rational, such as when stock prices rise with expanding earnings growth and general business conditions. And conversely when stock prices typically fall with declining earnings and sales growth. At other times the stock market does not make sense when the news and business conditions are out of whack with the trend of prices. The stock market precedes the business cycle. The four primary phases of stock markets are Accumulation, Mark up, Distribution & Mark down.
Holding the Ice
Price behave differently when trend begins each bar tell us the story. On Dec 28th market made a high and then price started falling with high volatility at that point our bias was bullish. On 11th of Dec Market started again a rally where bears got trapped and broken all time high with marginal amount. Almost 2 weeks market has sustained at all time high where composite operators had enough time to dilute their portfolio for short term. Then again volatility/momentum started with gap up & gap down, which is unnerving the investors most of the retail investors stop loss started hitting.
Now the price at crucial juncture. Market should move above the SCLX & sustain then I would consider as bullish bias , if not then we can conclude this as distribution pattern with subsequent target as 30,300 & 29,500.
ICICI Bank Flattens :- Demand is drying up and the price rally is struggling… any push downside with high volume could easily attain our targets.
Flat & Sloping downward formation, it can potentially have lower lows with spring being lower point of TR. Leading stocks shows sometimes weakness one strength bar can take the price up.
Coronavirus can be as negative to the stock market. However, some companies saw this as an opportunity, one of the company is 3M which produced face mask.. my expectation the stock can reach to 40k within short span of time.