Market MATH & Watchlist
2-June-2024: Accumulation before Election results
MATH: Momentum Anticipation and Trend by Homma:
MATH last week: Click the link
As technical traders, We
“Anticipate, but confirm. Wish, but only react.”
Trend:
The short-term market trend is DOWN
But is around the oversold territory.
Looking to find a bottom
Momentum:
Short-term momentum is down.
N50:
At the channel Midline.
Forming an intraday Base.
N500:
At the channel Midline.
Net4% Movers:
Showed a positive value on Friday.
The resolved plot also shows a sideways base.
Anticipation:
Channel midline can act as excellent support.
Pair it up with the accumulation and bullish action on Friday.
We can anticipate a bullish bounce.
The Ascending Channel breakout would be on the cards if the bounce is strong.
Remember this is anticipation,
As usual, we wait for confirmation and react.
Key Indices:
Adani Index looks poised for a Big Base Breakout:
(We can make a case that it has already broken out last Friday)
Summary:
Strongest (short term and medium term):
PSU (shipbuilders, Railways, etc)
Banks- PSUs (look for Big Base Breakout candidates)
Auto/Anc
Power
Metals
ADANI
If you are too confused then just focusing on PSEs and Adani’s would not be a bad idea
Potential Relative strength candidates for the future:
Watchlists:
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