NIFTY PE BREAKOUT AND NOW RUNNING INTO OVERBOUGHT

 NIFTY PE BREAKOUT AND NOW RUNNING INTO OVERBOUGHT



Breakout has been witnessed on the inverted head and shoulder pattern on NIFTY PE resulting into overbought on RSI.

The target implication can be towards 22.61 from current level of 21.85.

The level of 22.61 is the last peak when NIFTY PE was in overbought during the period October/November 2022.

If 22.61 PE is tested, then NIFTY 50 correspondingly will be at 18798 or above.

Therefore, this could mean NIFTY 50 will be attempting to test its earlier peak of 18887.

NIFTY 50 could be running into the upper end of the cycle which may be extending as long as swing top is not formed.

Swing top will be lower high and lower low in relation to its previous day movement with bearish candle like engulfing bear, dark cloud or evening star or evening doji star or long large black sell off candle.

The dynamic trend is up, the lagging trend is up and the candle strength of different time frames like intra-week, intra-month and intra-quarter is up at this point.





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