Attached are the Daily/Weekly/Monthly graphs of Nifty as on 02/12/2005 and the conclusion will be obvious. Except that the daily chart shows weakness on closing at yesterday's close/today's open and on RSI cutting from the above over its trigger average line , the graph is fine.
Your 10 DEMA is 2661 and 5DEMA is 2685. Keep a tab on these figures and trade on the LONG side only. Weekly closing is NEW HIGH and the November Monthly Closing was also at NEW High and hence all vital statistics reveal the strength of the market. Moral of the lesson is DONOT GO SHORT.
Yes, the indicators will show extreme Overbought levels. But stay invested and be on the long side only, till you get the confirmation.
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