NIFTY/S&P500 at Triangle Resistance

NIFTY/S&P500 relative strength chart has reached its descending triangle resistance as seen in this weekly chart. Should this be a reason to worry for Nifty bulls? Maybe, maybe not. Price will tell. Watch for price action in Nifty at the 18500 zone. If resistance kicks in, we may see some price/time correction. If not, we may break out of this descending triangle upper trend line and continue the upward journey.
We will be watching.

P.S. Similar price action happened in NIFTYIT/NASDAQ relative strength chart a couple of weeks ago and Nifty IT index has been in a corrective stance since then.

Kommentera:

The resistance played its role and for the whole of the last week and Nifty has shown a significant halt in its advance with respect to S&P 500. The US index went up while Nifty went down.
Let's see how the price action behaves in the week(s) ahead. Watch for this space for updates on this as the price action becomes clearer.