A gap is visible on the technical chart when the price moves sharply either up or down. The gap witnessed last week on Monday was a breakaway gap which usually occurs at the end of the price pattern and signals a new trend or a beginning.
Technical analyst Sudarshan Sukhani is not worried about corrections, infact he feels a market that corrects in an uptrend becomes better to invest because one gets in at lower risk and low prices. In an interview to CNBC-TV18, he suggested market participants to take positions on the long side.
Atul Suri tries to explain the details and the processes involved in a technical analysis of the markets.
The market has again entered a trading area or zone where it is too volatile to take any kind of directional call. The floor or the support price for this zone seems to be at 5900. Market experts see this as a sign of the market uptrend getting exhausted. The Sensex on Wednesday closed at 19,948.73 and the Nifty at 5973.30.
The Nifty closing 41 points down at 5857.55 is not a sign that the uptrend is over, or that the market is encountering resistance. Tuesday's trading session is just a pause after a continuous uptrend, partially because of profit booking. Their short-term outlook remains positive.
Ritesh Gandhi, Sr. Research Analyst, Commodity & Currency at Anand Rathi Commodities talks to CNBC-TV18 about the yellow metals in the commodity space.