Stocks for Upcoming Week & Markets Ahead

SMALLCAP100

I use a straightforward rule to gauge the market's direction: the 10/20 moving averages (MAs). I decide whether to participate based on these indicators. As long as the market holds above the 10/20 MAs, conditions seem favorable.

To verify this method, one can look back in history and check if the price is above the 10/20 MAs. When it is, the market typically favors long positions. Conversely, if the price falls below the 10/20 MAs and the slope declines, considering short positions or staying in cash is a clear signal. Remember, staying in cash is also a strategic position that good traders often use.

Market Breadth %Stocks Above 10MA -Often used to See Short term Action as Strength / Weak . -Quick rise in % here dispays the Bulls power and Quick decline here diplays the sellers are taking charge . -I don't see this to judge Overbought /Oversold breadth

%Stocks Above 20MA -This is important for swing trading to gauge overall health and momentum in markets -A high percentage indicates that a majority of stocks are trading above their 20-day moving averages, suggesting strong market momentum and a bullish trend -Overbought Conditions: If the percentage remains extremely high for an extended period, it could indicate overbought conditions, suggesting a potential pullback or correction is possible. -Oversold Conditions: If the percentage stays very low, it might indicate oversold conditions, suggesting a potential for a rebound or rally. Bullish Divergence: If the overall market index is declining but the percentage of stocks above their 20MA is rising, it could indicate that the market is building internal strength and a potential reversal to the upside is possible.

Bearish Divergence: If the overall market index is rising but the percentage of stocks above their 20MA is falling, it could signal weakening market internals and a potential reversal to the downside.

%Stocks Above 50MA Understanding when the market is overbought or oversold is crucial. Overbought conditions can persist for a long time, indicating strong market momentum. However, traders should not hold their positions blindly. They should start focusing on stop losses, as pullbacks and corrections can be severe, often trapping many traders.

My take on Current market conditions As we observe a decline in the number of stocks above the 10/20MA while those above the 50MA are holding steady, it suggests a potential pullback or minor shakeout in the market. However, this shouldn't lead to the assumption that the market can't fall. I am using stops for every position and taking partial profits. With a significant event like the Interim Budget scheduled for July 20th, I am trading with extra caution and am prepared for any outcome.

Leading Sectors/Industry : Stocks for Upcoming Week : 1. #MOIL - Strong Prior Momentum and Can move good in Short period - Unfilled gap displaying Potential urgency - Double Inside day ( Super Contraction ) - From Metals Industry and Some of them are setting up good - Good Basing ( Have Shakeout and Dry up vols on tightening )

2. #ITDC - Big Base - Strong up momentum - Potential Shakeout at 20MA - Consolidation near Highs of base - Coiling

3. #CSFB - Potential Trend Change - Did Shakeout test to Lows of Base Note : This has characteristic to move slow .

Thank you for reading it .Have a Great Trading Week .