Bulls will party for sure. How long????

Since September we have witnessed that bears hammered down the market around 20days EMA. This is the fourth attempt by the bulls to surpass the 20days EMA. In the same way most of the premier global markets too faced stiff resistance around 20days EMA since September. Now most of them are too trading around this mark. European Markets are looking more weak than other global markets, hence we may see profit booking after the European markets open.

If we see a rhetoric gap up opening immediately we will see some hammering. But I am afraid there can be a bear trap if not able to cover shorts soon. As mentioned earlier the bollinger bands contraction indicating some volatility in coming days. If nifty does not break 2745.00, bulls will have more hopes. Gap up around 2785.00 and closing further up will be great support for the bulls. Bears should close their positions and can wait to open them for some time. There can be stiff resistance near 2900 levels.

There is no doubt that we are in the bear market, so the painkillers given by the Government will subside the pain for some time. How long, that is to be seen. But for now Bulls will have a party.