Yesterdays low in sensex which is 19321 now becomes a powerful trend decider level for a few days and a continued upmove above 19321 will keep the double bottom possibilities open and a close below 19321 on any day in one or two weeks will play havoc amongst bulls.
The short term stochastics is now turning up from oversold zone and the ema band as shown in sensex charts placed in between 19704-19851 is the area to watch today and tomorrow one must remember that for completion of double bottom pattern we need a close above 20088 and the first step in that direction has been taken as sensex closed above Fridays high.Nifty too bounced back from supports in yesterdays panic selling . nifty touched 89 day ema and once again closed above it which is a very good sign in support to the upmove the rsi is turning up on daily charts and has given a buy cross.
Yesterdays nifty low of 5795 will be the trend decider level perhaps for the whole month of December now and a sustained upmove above it will keep double bottom scenario open and a close below 5795 on any day in future will open bigger downfall
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