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Overbought state of the market led
to reaction
Post 15358 (see chart), we
witnessed 13 days rally consisting of 9 days directional moves and 4
days counter trend moves. With 1585 points upsurge from 15358-16943,
market became overbought on lower scale chart, and hence today's
reaction which was comparatively bigger was obvious and should not be
taken by surprise. As long as market stays above D-F line, 'G' from
15358 will still be considered to be progressing.
As this 'G' of our larger Diametric pattern form 8110 (March 2009),
should be similar to 'A' in time and complexity, it has to spend
approximately 8 more days for its completion. Price wise it is not
necessary and hence our price target for 'G' at 17370-18650 is only
based on certain Fibonacci estimates. It can be even lower or
Tuesday's high of 16943 little short of 17000 mark, may also be a top
for 'G'.
Inside 'G', we are tentatively anticipating either "Diametric",
Extracting Triangle or some complex corrective (with small 'x'), must
be developing. If it is Diametric or any complex corrective, our given
targets can be achieved, but in case of ET, a failure scenario will
emerge only to terminate 'G' at a failure point 'e' of such ET.
Remember, we do not at all rule out 'G' crossing beyond 17000 to reach
in our target range, we only say, since price similarity is a
non-requirement, ET can become instrumental in restricting progression
of 'G' much higher. All said and done, eventually, break of D-F line
will confirm the end of 'G'.
D-F line is rising in nature and hence its value will keep on
increasing, which will be roughly anywhere between 16120 and 16450.
Keep the fingers crossed, and try to buy on declines with a stop loss
below D-F line.
Supports for the day are at
16683/16610/16556/16477/16435
and resistances are placed at 16765/16820/16890/16943/17028.
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