My view of the market heading into the week. Market has rallied hard from the low of 14648 to the high 15676. In 14 trading session market went from 15658 to 14648 and it took the following 15 session made back all those losses. Sounds a lot like range trading.
We have tested the highs and backed of a little bit which seems normal but 20 EMA( Exponential moving average) is currently at 15,308.
Potential scenario 1: could be time consolidation ( wait for the ema to catch up). Before we begin the rally again.
Scenario 2: Price correction to meet ema.
Scenario 3: Would be the opposite and we could some news that could have the market spiraling down.
For now I am leaning for towards Scenario 1 because of the past two trading session.
Intraday: I will be cautious while in this range. Goal will be to keep this range in mind and not get too excited about short term price spike.
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