Friday, June 15, 2012

RESISTANCE ZONE WORKS


SENSEX:RESISTANCE works and converts the buyers in to sellers
Remember that I had suggested the levels of 16920-17120 as a STRONG RESISTANCE ZONE since long.
The CANDLE PATTERN called an EVENING STAR which is a STRONG REVERSAL pattern more so because it has developed from the HEAVY SUPPLY ZONE of 16920-17120.
As can be seen on SENSEX chart SENSEX also got RESISTED at 200 DEMA and 200 D SMA now watch the support zone of 16544-16494 in next two/three days
The move started from yesterday will be a small mild correction if SENSEX does not close below 16544-16494 but a close below 16494 can put the last upmove in real danger


NIFTY : for NIFTY also it was a TOUGH ASK to cross the hurdle of 5133
The STRONG RESISTANCE ZONE of 5133-5217 has been being mentioned on NIFTY CHARTS and my TECHNICAL VIEWS since more then a month.
Yesterday I suggested that if NIFTY sustains below 5084 it will be a sign of caution for longs
NIFTY touched 5081 and bounced back but again failed to cross 5133 and once below 5084 again it was all in RED.
5020-4982 are two important NIFTY levels to watch as support
If NIFTY CLOSES BELOW BOTH OF THEM on any day within next 2/3 days the up move from 4760 will also be only a BEAR MARKET RALLY
Do not forget the expected intermediate up move above 5133-5203.



No comments: