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Second Down day ... watch out for
the third one
After 17493 top of last Friday (i.e. Muhurat day),
SENSEX made a lower High of 17457 on Tuesday. On Wednesday also SENSEX
could not cross above 17457 and made another lower High of 17249
giving us 2 down days in a row.
From F-G, counter
trend move was never more than 2 days. Now, if on Thursday, market
declines below Wednesday's low of 16997, it will be a 3rd down day
from 17493.
Wednesday's low of
16997 is supported on D-F line (see chart). Trading above 17249 (i.e.
Wednesday's high) will be bullish as it will yet again prove that D-F
line is protected.
However,
consistently trading below 16997 will be bearish and in fact, it will
be like trading below D-F line, which will give first confirmation of
completion of 'G'. Faster retracement of entire leg from 16606-17493
is required for the reversal confirmation.
Traders should therefore watch those two levels i.e. 17249 and 16997
as crucial. Supports for the day are at 16997/16943/16855/16810/16687
and resistances are placed at 17068/17120/17195/17249/350.
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