Weekly Chart
Technical analysis is based on the fact that the current price reflects all actionable information about a stock. It reflects buying and selling by the market participants.Technical analysis assumes that the smart money has a strong opinion, probably backed by a serious dose of good information.Price patterns then emerge which indicate the direction of the next move.
( Some of the above words may have been picked from technical analysis articles)
The bottom being made was signalled well by candlesticks theory and oscillators.The last two weeks of February 2016 saw selling drying up with two smaller bodied candle after the huge bearish one made in the week ended 12th Feb.The huge white candle made in the week ended 4th March was confirmation of the selling having come to an end.
The inverted head and shoulder pattern signalled further bullishness with a test of the all time highs at 9119.The multiple shoulders being made signals we might as well make new all time highs !
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Happy Trading !!
Lakshmi Ramachandran
