Thursday, October 11, 2018

NIFTY breaks up trend from March 2016

Julius de Kempenaer is the creator of Relative Rotational Graphs (RRG), a unique method to visualise relative strength of stocks and sectors. He is the founder and director of RRG Research, Amsterdam. Read more about him here.

In a recent post featured on the stockcharts.com site, Kempenaer discusses the decisive break of the up trend on the long-term weekly chart of Nifty, and identifies some of the sectoral indices (based on his RRG) where investors can hide, or expect some outperformance on the down side.

Remember that a trend - whether up or down - is expected to remain in force till it is decisively broken. Last week's downward break of the up trend is a clear indication that another bear phase (within a longer-term bull market) has started.

For those who are unfamiliar with - or have never heard of - RRG, Kempenaer has clearly explained the concept with notes on his RRG charts.

Shown below is the long-term weekly Nifty chart (from Kempenaer's post):



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