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Under pressure
Despite positive global markets,
Indian markets exhibited some strength initially of normal nature,
only to give up more than 350 points from its high. Generated "Dark
Cloud Cover" candlestick pattern which is certainly bearish as it is
in an overbought zone.
Our larger 'G' from 15358 (see chart) is probably unfolding as a
"Double Combination" a NEoWave pattern where we have two correctives
separated by a small 'x' wave.
Here, second corrective (see chart after 'x') can be either Triangle
or Flat with 'c' failure. If it is triangle, current decline could be
only a small 'd' to be followed by 'e' going up, but if it is a 'c'
failure Flat, then rally has probably terminated at 17120.
If true, then top has been made and now only the break of D-F line on
closing basis is awaited. For Thursday D-F line value comes at 16650
which is quite crucial to watch out for.
Traders are advised to look for shorting on rise rather than venturing
to buy.
Supports are at 16764/16713/16650/16580/16494 and
resistances are placed at 16860/16966/17006/17079.
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