Thursday, May 15, 2008

sensex channel

Hi , just 15 days our markets behaved exactly as I expected,and yesterdays strong moove, made a BULLISH candle reversal pattern,suggesting that both,sensex and nifty took support exactly at the lower end of the channel drawn and the sensex chart was sent on 30th april..I quote a small para of that article........"3)the current up move in indices have a few important points to be noted,,the moove looks tobe making an upward channel the slope of which is NOT very encouraging,,but actually supports my view of a long term sideways phase,, that i expect.,,the channel target in a short term in nifty around 5300 and around 17800 in sensex...expect some correction in the channle itself to take support at the lower end of the channel..." you can clearly see in the sensex chart ..yesterdays low was the lower end of the channel...we saw a hefty 400 points bounce -back from the support..
Some important points to be noted as per latest chart development...
May 15, 2008 (7:31am)
1} as I wrote about indicator which would generate a buy signal on the weekly charts,,it really did the same and is now in a clear buy mode
2}all the short term moving averages that I use..are on the verge of taking support on a little higher period moving averages..if indices maintain bullishness atleast for 2-3 more days,these moving average support will cause a very speedy up-side moove..
3}IF SENSEX AND NIFTY AND FEW IMPORTANT MARKET MOOVERS LIKE RELIANCE...MAINTAINS EVEN A SIDEWAYS MOOVE IN THE RANGE OF LAST 15 DAYS...AND DOESNOT FALL MUCH...WE WILL SEE MOST ANALYSTS WRITING ABOUT A STRONG REVERSAL PATTERN """INVERTED H&S"...the implication of this pattern if actually completed will be of huge targets for sensex around 21000,,and for nifty around 6100...!!!!!!!!!!!!
..enjoy...bjnaik..May 15, 2008 (7:32am)