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Largest single day fall within 'G'
suggests for TOP in place
In last issue we had said that
break below 17059 will creep in weakness. Market opened with down gap
and slipped below 17059 immediately, trading negative for the entire
session.
Within larger ‘G’ from 15358, we got first largest single day decline.
Pattern for
the day emerged as bearish Evening Star. Oscillators
turned south cutting down their trigger lines in overbought zone and
A/D ratio turned extremely poor.
All this suggests for perhaps top at 17196 being in place. Only silver
lining to negate this contention is that volume is very low and so far
we do not have more than two down days within 'G' (see chart).
However, if this recent rally from 15358 turns out to be a suspected
Double combination (as shown below), we may see some consolidation
near top formation area, before speedy retracement comes in, where we
can get more than 2 down days.
Now, strength can return only above Monday's high i.e. 17062 while,
weakness will continue below 16835 (below NSE 4992). Traders are
advised to stop indulging aggressively on the long side but initiate
some short trades on rise with a strict stop loss above 17062.
Without falling much on the down side, if 17062 is taken out soon
enough, our diametric concept within 'G' will again become
applicable. Till then we can focus on Double Combination. Supports
for the day are at 16820/16719/16693/16610 and resistances are placed
at 16910/16982/17062/17106/17135.
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