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Bearishness seems to have negated
at least for the time being
We said ... break of D-F line gives
us first confirmation of Topping and reversal of bigger ('B' in
circle) while, breaking below 16494 will provide
re-confirmation of the same.
D-F line was certainly broken on log scale but on arithmetic scale, it
was not ... In fact, it was actually supported on D-F line. Last
Friday's sustained weakness made us believe that even on Arithmetic
scale, the same D-F line will get broken on Monday. But the things
were different on Monday, turning over the table completely.
Now, since D-F line, and eventually 16494 is protected, we would go
with the flow of the market and watch 17120-17196 area on the higher
side. We would see whether this area proves to be a struggle zone or
allows itself to be taken out easily.
On the downside, value of D-F line is now increased to 16700 on
arithmetic scale. In other words, 16700-17200 is a 500 points range,
where market will remain indecisive, but break on either side will
provide direction.
Till then it is prudent to be unvocal on the market trend. Supports
for the day are at 16988/16943/16832/16725/16680 and resistances are
placed at 17069/17120/17196/17275/17370.
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