The location of the long term group of moving averages in the Guppy Multiple Moving Average indicator shows good trend support. The width of this group is about the same as the distance between historical support at 14,500 and recent consolidation support at 15,500. This suggests a strong and sustainable uptrend.
However this trend can still develop correction behaviour. This trend correction has a high probability of correcting using time. This means the market moving sideways for several weeks until it encounters the support provided by the long term GMMA. An extended period of consolidation provides a firmer base for a strong up trend continuation.
A sustainable breakout above 17500 in the next week or so develops a faster moving momentum trend with a rapid move towards 19,500. This is a good trading trend, but the momentum in the longer term is unsustainable. This increases the probability of volatile trend corrections.
The general outlook is bullish, but it is the nature of the trend continuation which is most important. A strong resistance near 17500 signals a more stable trend development. A fast moving breakout above 17,500 leads the way for a profitable trading environment with a closer eye on risk management.
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