Gold Again & World Markets in strong uptrend

15 minute chart shows potential for breakout.

 World Markets in strong uptrend

Indian markets will remain closed tomorrow also. But, so what? The S&P Nifty now trading on the CME is at 5080 (at 7.56 PM). That is a good 75 points higher than the close on Tuesday in the NSE. Markets continue to move up, in what should now be considered as an uptrend for most world markets.

The Intermediate trend remains down. But, this trend changes to up if and when the Nifty closes above 5200 which was an intermediate top on the way down. The Markets offer a number of possible scenarios:

1. The bear market / correction may be over. If this is so, 4700 becomes a bear market low. We should expect the Nifty to go above 6350 at some point of time.

2. The current rally is a normal correction in an ongoing bear market. If that is so, then the rally should face resistance around 5200, and, later at 5735. The problem is that the bear covering rally can continue for a long time, and a bull market will be announced only if the Nifty crosses 6350. But, trading tactics should be different. Once the Nifty closes above 5200, then 4950 becomes a stop. Investors should go for buying whenever buy signals come in. Traders should be long even now since a short term buy signal was given when the Nifty made a 200 point advance on Monday.

3. Markets move into a trading zone with 4800 as support and 5400 as resistance.

Readers are welcome to offer their own scenarios, with their opinion on which scenario is likely.