Will the short squeeze seen today continue ??

Will the short squeeze that we saw towards the end of the session continue tomorrow also?

This is a million dollar question to be answered and my take would be an 'yes' to the above question.

All along today's session, I was expecting the squeeze to happen and only that I was expecting it to happen too soon. The reasoning is quite simple. The 3 day bullish pattern of 3 white soldiers followed by a bearish day, followed by another strong bullish day was the pattern with which we entered trading today. Clearly already so many bears are trapped and we havent seen enough of squeeze happen before due to the fact that NIFTY was already near its 50 DMA and infact retraced quite a lot in the previous session to close even below its 50 DMA. Given this scenario, after a strong start markets started trending down and so fresh shorts and old shorts were all happy that they were holding on to their position and NIFTY has made the reversal. But as perceived yesterday, the undercurrent was still very much bullish as more bears have been trapped and they are the ones going to supply the money. Looks like weak bulls were also thrown out today.

The close has been above the 50 DMA which is currently at 2796. A strong close and a close above 2800 after 20 sessions.

So I expect this move to continue till we reach our target of 2868 and if we see some strength at that level, then NIFTY can move on to 2950 levels even before March expiry.

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Happy Trading
www.tripleint.com

Chart prepared using Fcharts PRO