India Is Breaking Out Of 7-year Base!
Looking a little closer, here is a daily line chart of $INDY which only takes into account the daily closing prices over the last few years. If you turn your attention to those early 2015 highs just above 33, it is very clear that the former resistance turned into support multiple times this year. This Principle of Polarity is one of the most important concepts in Technical Analysis. What it suggests is that there was enough demand to absorb all of the overhead supply that had been in place for years. This does not happen overnight. It takes time:
We want to be buyers of any weakness in India and be long $INDY if we're above the 2017 lows, which were the former highs in 2011 and early 2015. Our projections give us a target near $40 in the short-term, but based on the size of this massive consolidation, there is certainly much more upside potential than that. From a risk management standpoint, the line in the sand is very clear. If we are wrong, we will know soon and the risk is very well-defined. When our upside objectives are exponentially greater than the risk, these are opportunities where we want to get involved.
If you're interested in learning more about Allstarcharts India, make sure you sign up here to receive the details of our upcoming launch. I will be visiting Delhi and Mumbai the week of January 7th-13th. Feel free to contact me if you are in the area and I will send you the invitation to the live presentations I will be giving while I am in each city.
Cheers,
JC