US markets have been trading in a range since
last one month. If we look at the first
chart we can see that markets trading in a very narrow range from 1660 -1720.
US markets have been doing time correction without any substantial damage to
the price. This signifies that there is lot more upside in the market.
The weekly chart has made a doji and the US
market may form a morning star in October. I expect US to break out of the
range and move towards 1820 before the end of this year.
If we look at the monthly chart, the upper end
of the channel for S&P500 is at 1820 – 1850 levels and I expect these
levels to come before the end of current year.
Summary:-
1.
Expecting
sharp rally in US market (around 60% probability)
2.
Go
long on US stocks with stoploss of 1650 on S&P and target of 1820. CMP @
1690
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