We are back slightly above that old high again but the penetration was not great.
Volume picked up a bit as you can see from the middle chart and that helped push Wednesday's rise. The MACD cross is bullish but from almost every other technical perspective the market still looks overstretched and we could still be seeing a topping pattern from the August-October rally.
To get back to trend the BSE needs to retrace to around 16,500.
Another factor is that the BSE is now further ahead of the rest of the Asia markets, in terms of relative performance, than it has been since the beginning of last year as you can see from the chart below. From this we can deduce that even though we have had the start of a correction in the BSE, Asia has performed more poorly so maybe India needs to catch up on the downside given there has been no fundamental shift.
Volume picked up a bit as you can see from the middle chart and that helped push Wednesday's rise. The MACD cross is bullish but from almost every other technical perspective the market still looks overstretched and we could still be seeing a topping pattern from the August-October rally.
To get back to trend the BSE needs to retrace to around 16,500.
Another factor is that the BSE is now further ahead of the rest of the Asia markets, in terms of relative performance, than it has been since the beginning of last year as you can see from the chart below. From this we can deduce that even though we have had the start of a correction in the BSE, Asia has performed more poorly so maybe India needs to catch up on the downside given there has been no fundamental shift.
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