WEEKLY TECH VIEW

THE RESISTANCE LEVELS WORKS AND CORRECTION SETS IN , NOW WHAT ?

TECHNICAL REVIEW FOR THE WEEK STARTING FROM 12-09-2011 :

We had shown 5116-5177 and 17100-17300 as a zone of strong resistance in our earlier technical reviews and from last Thursday through our daily technical views we suggested a CORRECTION on the down side from the resistance levels.

On Friday we even said this “If after opening today NIFTY can not cross its OPENING HIGH within first 15 minutes and then if NIFTY closes below  5098 we will have first confirmation of a correction setting in.”

And after opening NIFTY made a high of 5163 and within first fifteen minutes this high was not crossed which gave clear indication of what was coming and NIFTY closed down more then 100 points from the days high.

So, the due correction has set in now the question is where will it stop ?

Looking at the leading world market indices like DAX and FTSE which have broken their august lows it is possible that SENSEX and NIFTY too can d the same BUT since our market has deviated a little in last two weeks of trading from the world markets SENSEX and NIFTY can find some support at 4720 and 15765.

But if SENSEX and NIFTY does not break 16443 and 4927 within first three days of the coming week they may form a HIGHER BOTTOM .

So looking at the two distinct possibilities the only way for us to closely follow markets for next few days.

For a significant bottom in place markets will have to have a BASE FORMATION which can be a PRICE PATTERN or can be a DOUBLE CANDLE REVERSAL PATTERN on weekly charts .

Do remember that we have projected a strong upside rally from around 15300-15500 and 4538-4625 SENSEX AND NIFTY levels respectively if the august lows gets broken.