SENSEX : SENSEX continued its upward journey but now it has reached CRUCIAL RESISTANCE AREA so one must take care in longs for the SHORT TERM.
A correction will be healthy from here because in all probability there will be a HIGHER BOTTOM FORMATION and also if the CORRECTION remains slow and DOES NOT BREAK 16488-16432 it could well be a RIGHT SHOULDER OF the inverted H&S PATTERN.
This process will take time and the anticipated correction must remain slow.
Resistance 17157 and 17445 and supports at 16894 and 16688.
NIFTY : NIFTY has now reached important resistance levels and after such a STEEP rally a correction should be a welcome one and should give a BETTER buying opportunity in stocks which are making some REVERSAL PATTERNS and showing some strength.
4942 and 4927 are now IMPORTANT TRENDDECIDER LEVELS and if NIFTY is to make a higher bottom it must not break these levels on closing basis.
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