Indian and Global markets end the week on a bullish note - what lies ahead?

Nifty formed a small bullish candle last Friday that looks like a hammer within the support offered by a massive gap up of ~1200 points last Tuesday after the Indo-US trade deal was announced in the late hours on Monday. Daily chart below.

Nifty daily chart showing a hammer formation at support last Friday

It is also a small sell failure that breached a small 2 day range before reversing and closing strong on a Friday near the day high, right at a prior horizontal resistance @ 25693.

While the implications of this formation are bullish, it would be interesting to see how the price negotiates this resistance on Monday.

Meanwhile, the US indices have also made a super bullish close to the week last Friday. DJIA formed a big green candle closing emphatically above a month long congestion at an ATH, touching 50K for the first time in history! Daily chart below.

DJIA daily chart showing a big green candle closing above congestion last Friday

Nasdaq formed a fascinating bullish setup as well. Thursday's candle was a bearish candle that breached support and generated a sell signal with the low testing the overnight gap created on Nov 24 of last year. However, Friday had a gap open with a big green "Gap and Go" candle, that closed right at a horizontal resistance, generating a sell failure. This particular combination appears very bullish despite closing at prior resistance. Daily chart below.

Nasdaq daily chart showing a big green reversal last Friday after a sell signal the prior day

The European indices have all generated a bullish buy signal as well.

The coming week appears set to start on a firmly bullish note for the global markets, climbing walls of worry, the hallmark of a bull market. Only time will tell what happens next.

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