Friday, 3 February 2012

Indian Nifty 50 breaks higher from trend channel

I have been showing this trend channel on the Indian Nifty 50 index for many months. The market has now broken out to the upside. From the 2010 peak, the Nifty looks to have been trading correctively downwards inside a trend channel. The corrective nature of that decline implies an eventual move to above the highs of 2010. The break above the topmost trend channel line indicates an increased potential for that move to be underway. Of all the global markets that I have studied, the Indian market provided the best returns for Australian investors in the decade leading to July last year.

I have a huge wall of worry to climb with any bullish signals on the US, European, and Aussie markets. But I know nothing about India, and don't want to know. Makes it easier to take the signals...

AUD/USD tests September and October highs

EUR/USD tests October and November lows