Buyers have gained a foothold making a first notable recovery likely after the nearly 8% drop since late last year. Expect a bounce up to roughly 66.55 or max 67.90 over the next days and weeks.
The medium term is more difficult to discern. Is the market engaged in a complex multi-year counter trend phase (correction in uptrend) or base building before a long-term trend reversal (i.e. bearish)? We’ll have to monitor developments over the next few weeks and months for more signals.
For the near-term only we maintain the sell-the-rallies strategy. Longer term is too uncertain.
- Current trend: recovery in down trend
- Outlook/expectations: recovery
- Strategy: sell the rallies up to 66.55
- Support: 64.85 / 63.50 / 60.75-
- Resistance: 64.80 / 66.55 / 67.90 / 68.95+
Daily chart USD/INR