SENSEX: the WEAKNESS continued in the early morning trade
but there was a sudden recovery from the lows and SENSEX established a new
support at 16736
SENSEX completed a CANDLESTICK PATTERN called A HAMMER which
can be a potential BOTTOM FORMING PATTERN but it needs a STRONG FOLLOW UP.
In our case a SENSEX close above 16962 and better above
17047 can be termed as a good follow up of THE HAMMER.
A few days sideways move facing RESISTANCE at the BEARISH
GAP at 17129 and the down move may resume again.
There is a STRONG TRENDLINE RESISTANCE as well.
NIFTY: when a fall starts any INDEX starts developing
RESISTANCE LEVELS in the way of the fall.
In our case while NIFTY started to move down and created two
BEARISH GAPS which will be strong resistance zones first one between 5267-5300
and second one between 5164-5197 and in adiition to them there is a FALLING
TRENDLINE which will be a resistance as well.
So if a pattern called HAMMER as on yesterday can become a
BOTTOM provided NIFTY can close above 5164-5197 in next two days.
A new SUPPORT at 5076 but a failure to close above 5197 and
NIFTY may resume the down trend again.
3 comments:
Sir what is the basis of new support at 5076?
Sir, what was the basis for support at 5076?
it was an odd low of one day, nothing significant
Post a Comment