Re: Sensex TECHNICALS
i wrote a few days back,that if nifty is unable to close above 3515, it will enter a small range,,the same day nifty made a high around 3500,but soon feeling the pinch of the resistance zone (3512 is 1.618% of the last fall in nifty,before it started this massive rally...see the chart below)
nifty, went down among fears gripping the markets about swine flue,but the very next day ,,opened higher and rallied throughout on the day of settlement.a mini vacation, and we will be seeing the rally to continue, upto atleast 3650-3700 zone as discussed here earlier.
next ??
i have developed a trading system which generates buy-sell calls ,with around 85% of accuracy,a few days back i got a small list of stocks which had given buy calls,but , havent given successfull upmove in the last week,which for me is a warning that the rise in the coming week will not sustain much,,
also,there is one warning signal generated by my favourate indicator setup in hourly charts,,and as i mentioned here a few weeks back,that 3650-3700 zone will not only be the target zone for the current rally but also will be strong resistance area too.
so,in my opinion next weeks rally will be to exit longs...only one event can perhaps take this rally to newer highs above 3700...tht is a inverted h&s breakout in dow.
if that happens dow can be targeted to around 9000 !..so,,be careful around 3700..and better watch dow,in the next week.in that case nifty targets will be revised upto 4140.
double botton in indices in weekly charts.
as i suggested here in my oct-08 16th...article,,rectangle pattern was developed in the daily charts,,and on the weekly charts its actually a big w..a double bottom pattern developed..targetting the same 3700 around levels.and 12300 around in sensex.
http://bhoom2tika.blogspot.com/
