In the last week’s analysis, we had pointed out that the Sensex was likely to head higher after failure of “Island” reversal pattern. This we have seen happening with bounce towards 15.4k as against target objective of 15259-15390.
However, we need to mention here that, it is likely to come under severe pressure near the 15.6-15.7k zone, due to “neckline” resistance (see inlaid weekly chart –published on 1st July 08) on possible H&S reversal marked on weekly chart; & .618% Fib resistance near 15748.
Breaking below the rising trend line (daily chart) will be the first sign of waning interest of the bulls & the anticipated down move will be confirmed only with a move below 14.8k, revised stop. In short, expect “deceptive” trading environment even while upward targets placed near to 15.7k or even 16k.
August 11, 2008
Positive > 15280, Stop(r) 14.8k (cl)
Bse Sensex 15167
In the last week’s analysis, we had pointed out that the Sensex was likely to head higher after failure of “Island” reversal pattern. This we have seen happening with bounce towards 15.4k as against target objective of 15259-15390.
However, we need to mention here that, it is likely to come under severe pressure near the 15.6-15.7k zone, due to “neckline” resistance (see inlaid weekly chart –published on 1st July 08) on possible H&S reversal marked on weekly chart; & .618% Fib resistance near 15748.
Breaking below the rising trend line (daily chart) will be the first sign of waning interest of the bulls & the anticipated down move will be confirmed only with a move below 14.8k, revised stop. In short, expect “deceptive” trading environment even while upward targets placed near to 15.7k or even 16k.
In the last week’s analysis, we had pointed out that the Sensex was likely to head higher after failure of “Island” reversal pattern. This we have seen happening with bounce towards 15.4k as against target objective of 15259-15390.
However, we need to mention here that, it is likely to come under severe pressure near the 15.6-15.7k zone, due to “neckline” resistance (see inlaid weekly chart –published on 1st July 08) on possible H&S reversal marked on weekly chart; & .618% Fib resistance near 15748.
Breaking below the rising trend line (daily chart) will be the first sign of waning interest of the bulls & the anticipated down move will be confirmed only with a move below 14.8k, revised stop. In short, expect “deceptive” trading environment even while upward targets placed near to 15.7k or even 16k.
