The Hidden Dragon

While our counterparties have been busy defending their negative sentiments, markets have crept higher. Now our fellow bears would say that, “So what if we have crept higher, there is supply overhang that is still there. A multi-week break of resistance does not mean that the multi-month resistance has vanished. Look at the Dow, even if the multi-month stands broken, the all-time 2008 high is still standing firm”.
See this is all fine, and bulls make money because bears reason, question, doubt, etc. and vice versa. But what the losing party forgets is that it’s extremely hard to pinpoint the last leg. A panic low does not come and say, “I am done, please BUY”.
You can read the complete article in Business Standard

Mukul Pal, is a Chartered Market Technician, MBA Finance and a member of the reputed Market Technicians Association (MTA). He has more than a decade of Capital Market experience dealing with derivatives and global assets. He has worked for Bombay Stock  Exchange, multinational Banks and brokerage houses in leading research positions before starting on his own in 2005. He is the President of the MTA Central and Eastern European Chapter.