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SENSEX gives "Counter Attack Line"
on Muhurat day
It was a short one hour trading of
Diwali muhurat which can not be compared with any full-fledged trading
session. However, within that little session SENSEX produced a
candlestick pattern called "Counter Attack Line" (Henceforth referred
as CAL) on comparatively large volume.
CAL pattern is a bearish pattern which shows gap-up opening with great
optimism but, soon turning into a great pessimism. Selling continues
from higher levels eventually to close right at the previous days
close. Such price behavior is depressing, which can lead to a complete
reversal in sentiments but, continued weakness on the next day is
required to confirm such reversal.
Now, weakness will creep in below 17260 and strength above 17493.
Trading below 17260 on the back of CAL, will turn the motion line down
creating a new channel for us (see chart). In such scenario, weakness
can continue up to the lower end of the channel in coming days, which
may also meet at D-F line of larger NEoWave Diametric pattern.
On the other hand, in case of SENSEX consistently trading above 17493
can take itself up to 17950 (A weekly channel resistance) in this week
only. We bet more on the former view than the later but the later one
must be kept at the back of your mind.
Supports for the day
are at 17260/17203/17136/17082/17021 and resistances are placed at
17371/17452/17493/17558.
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