i said this a month ago, with clear time analysis of a top near nov first week one of my logic was an observation regarding how 200 ema flirts with indices.
{{AS , it is very clear that sensex is near its jan-2008 pick, here, sensex can pick out, not being able to cross 2008 pick, OR if in coming days sensex crosses the 2008 high, than there will be buying euphoria and there will be some serious panic among BEARS,, BUT as the saying goes, markets generally tops out when the LAST bear rushes to cover his shorts,so it will be very interesting to observe markets this month.
4 : retracement as support and channel (rectangle) target :
As can be seen on sensex chart ,since October-2009 to early sept-2010, it was moving in a channel ,which can also be called as a rectangle, the move within the channel was roughly of 2000 points,sensex broken out of the channel in early sept and has moved up by 2000 points , meeting the rectangle break-out targets.
Fibo. Retracements is an all important technical tool used to find out supports /resistance levels.if we assume that looking at the present mood of the markets and money flow from the FIIS, IT IS ENTIRELY POSSIBLE THAT we may see 21200 level of sensex in coming days.if that happens and if we calculate future fibbo retracements levels taking 21200 as the new high, one can see that the ONE YEAR LONG CHANNE L , HIGH and LOW ,BOTH becomes support levels and also the big gap (after election 2009) area becomes one important fibbo retracement support level.
So ,concluding this article ,we can presume that one important top is nearby.
Tracking the possible top and confirming it using other technical tools, will be a job ahead.}}} 11th oct 2010.
the mentioned job ahead was duly done on my blog with precision timing and even here i wrote a detailed article on monday.
HERE IS the nifty hourly chart with my trading system
and what i said about nifty a month ago.
and this is what happened in last month.
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