SENSEX :
Sensex once again moved in last 3 days exactly as per our views presented here.
Resistance at 78.2% Fibonacci retracement level worked as expected although there was a strong double bottom pattern we were firm in our belief that sensex will react on the down side and it did.
The black line on sensex chart is actually called neckline of the double bottom pattern and if the pattern has to reach its target this support must work another important support almost at the same level is 38.2% Fibonacci retracement it is 20050.
Sensex made a low of 20107 which is the neckline value.
We need a strong bullish candle reversal pattern as a confirmation of supports working either today or maximum on Monday.
Nifty :
For nifty the neckline of double bottom pattern has been around 6025 the previous highs which were strong resistance earlier were 6028-6001 and the 38.2% support is 6003 .
Nifty in panic selling yesterday made a low of 6022 and closed higher at 6048.
As shown on daily chart of nifty the fast stochastics is now entering the oversold zone and we expect a bounce back from here in a day or two.
If the last 3 days down move is only a correction than atleast for nifty /sensex we will have a good upside but we need a bullish candle reversal pattern as a confirmation.
Considering the broader market it is very sector specific fight between bulls and bears where in banking and reality have been the worst hit only it and consumer goods looks to fight the bears.
TECHNICAL VIEW 2011 :::
CHART SPEAKS:
3 comments:
Bhavesh ji!
Do you see any major sell offs(20 to 25%) this month? Like Jan 2008. Because, the way the dollar getting stronger, can we see a dollar carry trade?
Bhavesh ji!
Do you see any major sell offs(20 to 25%) this month? Like Jan 2008. Because, the way the dollar getting stronger, can we see a dollar carry trade?
yes but not or may not with severity like 2008 first and second i am not a time analyst so do not know if a crash comes exactly in this month or not.
more importantly if you study my comments on all charts it will be nice and clear that a crack will be below 5685 will be severe.
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