Major Indices : Sensex : 16275 : Nifty : 4859
Intermediate Trend: Bearish – Stop 17413
Key Technical Levels: 16626- on the upside: 15848- on the downside
In the previous review I said " bulls failed to strengthen their position after 3000 points rally; this lack of commitments at crucial points indicates a larger degree falls in the next couple of weeks; this argument will loose value only if the Sensex sustains above 17413; On the downside, the last hope (for the bulls) is at 16400-16452 levels”.
In the retaliation move, the Sensex achieved 17434 (as against 17413) but lost almost 1200 points for there, proving the anticipated weakness.
As of now, the bears are in control of the markets. The bulls are just “hoping” for the best, but failing (repeatedly) to head higher. In this week, the Sensex has created a new resistance level with a falling “Gap” created on Monday, i.e. 16626-16498. The importance of such “Gaps” is immense as far as deciding medium term trend of the market. Look at the earlier falling “Gap” scenarios on the chart (since the top of 21k); these gaps remained “unfilled” and so the persistent weakness. Today it has made an attempt to “fill” the gap, but failed. As long as the Sensex trades below this recent falling gap area of 16626 (highest point of the gap), the recovery or even short term bounce is ruled out. If the bulls succeed, then expect a rally (corrective) up to 17200+ which is nothing but an upper end of the new falling parallel channel (marked in blue dotted lines), where expect a renewed selling pressure. On the downside fall up to 15850-15300, in the next couple of weeks, looks imminent. Trade accordingly.May 27, 2008
Weakness Persistant
Major Indices : Sensex : 16275 : Nifty : 4859
Intermediate Trend: Bearish – Stop 17413
Key Technical Levels: 16626- on the upside: 15848- on the downside
In the previous review I said " bulls failed to strengthen their position after 3000 points rally; this lack of commitments at crucial points indicates a larger degree falls in the next couple of weeks; this argument will loose value only if the Sensex sustains above 17413; On the downside, the last hope (for the bulls) is at 16400-16452 levels”.
In the retaliation move, the Sensex achieved 17434 (as against 17413) but lost almost 1200 points for there, proving the anticipated weakness.
As of now, the bears are in control of the markets. The bulls are just “hoping” for the best, but failing (repeatedly) to head higher. In this week, the Sensex has created a new resistance level with a falling “Gap” created on Monday, i.e. 16626-16498. The importance of such “Gaps” is immense as far as deciding medium term trend of the market. Look at the earlier falling “Gap” scenarios on the chart (since the top of 21k); these gaps remained “unfilled” and so the persistent weakness. Today it has made an attempt to “fill” the gap, but failed. As long as the Sensex trades below this recent falling gap area of 16626 (highest point of the gap), the recovery or even short term bounce is ruled out. If the bulls succeed, then expect a rally (corrective) up to 17200+ which is nothing but an upper end of the new falling parallel channel (marked in blue dotted lines), where expect a renewed selling pressure. On the downside fall up to 15850-15300, in the next couple of weeks, looks imminent. Trade accordingly.
