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Last Friday, market produced an
"Inside Bar"
Due to truncated week, last trading
session of the previous week produced a neutral price action i.e.
"Inside bar". As a result, week also ended marginally i.e. quarter
percent lower.
Within the development of 'G', we
have not so far seen more than two down days. Last Friday's "Inside
bar" prevented 3rd down day despite global weakness. However,
producing 3rd down day this week, can not be ruled out though it is
not necessary.
It all depends, on how wave 'G' from 15358 eventually unfolds? We
already explained in one of our previous issues that pattern within
'G' as, either diametric or complex corrective involving small 'x',
may have potential to take market further higher i.e. beyond 17000
mark.
But, Extracting Triangle may lead to little deeper cut, spending more
time, keeping price wise lower than 16943, and eventually terminating
larger 'G' at a failure point at 'e' of such ET.
For enhancing the possibility of making new High higher than 16943,
SENSEX needs to first cross 16834, where motion line will turn up and
optimism will increase but, on the other hand break below 16494 will
cause some weakness and first confirmation for end of the rally will
be break of D-F line.
Till then, traders should act according to given levels. Strategy
should be of trading LONG side with a stop loss below 16494 only to
re-enter again near D-F line. However, breaking D-F line on closing
basis will call for creating SHORT trades.
Supports for the day
are at 16613/16560/16494/16434 and resistances are placed at
16782/16834/16943/17028.
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