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On second day of decline, market
stages a smart recovery
From 17196, where we suspected of a
probable top for the market, is yet a suspicion and not a
confirmation. Decline form 17196 was somewhat more in size, but
eventually recovered smartly from lower level suggesting, this time
also, market does not want to give more than two down bars.
However, coming session i.e. Wednesday will be more crucial because,
it will be more clearer that whether market is unfolding for Diametric
or Double Combination within larger 'G'.
If it is DC, it will be more or less like black labeling shown below
and will not cross above 17196 but consolidate and break below larger
D-F line. But, if it is Diametric, we have probably seen end of small
'f' (see red labels) and small 'g' may have opened up which can take
out 17196 easily.
In other words 17196 is very crucial which traders should pay more
importance to. Larger D-F line is rising in nature and its value for
Wednesday is at 16600 hence, major weakness is possible only upon
breaking this line, while intra-day strength will be seen above 16988.
As long as 17196 is protected, traders should follow the range of
17196-16600 in which they may sell on rise and buy on decline.
positional sell can be initiated only below D-F line and positional
buy above 17196.
Supports for the day are at
16895/16850/16785/16713/16670 and resistances are placed at
16988/17062/17142/17196/17315.
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