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Is larger 'G' a "Double
Combination"?
Market closed flat with marginally
negative A/D ratio and normal volume. We have given below 30 minute
chart of SENSEX showing 'Double Combination' within larger 'G'.
As opposed to positive global scenario, will our market outperform in
favor of bearishness? Last 7 months rally of 9000+ points has really
ended with a 7 leg diametric formation? All these questions can be
answered only upon practically seeing the break of 16622 level on
closing basis.
Such break will also violate the b-b line of assumed DC as well as
confirm the end of 'G'. On the other hand, if our market follows the
increasing global bullishness, and attempts to create new high, a
major change in chart structure will be required. Last 4 days,
Indian market has not followed the global foot steps. This encourages
to believe the validity of present interpreted structure.
Now, going by current analysis, we can see a contracting triangle
(a-b-c-d-e) in second corrective of Double Combination, which has
broken b-d line already (see chart). Further, it should break 16730
(D-F line) and then 16622 quickly to turnaround the sentiments of
market fraternity from neutral to negative.
We would bet more on bearish side though, today i.e. Friday is a
crucial decider. Shorts if any, should be protected with a stop loss
above 17120 but, below 16622 one can add more.
Supports are at
16764/16730/16622/16560/16435 and resistances are placed at
16913/16988/17120/17196/17260.
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