Sideways..waiting for breakout(mostly downward)

Dow Jones Industrial Average 11543

Negative We said “the market may make another attempt to surpass 11.8-11.9k if remained above 11.3k”. As against this, the Dow created a low of 11340 & did make an attempt but could achieve only 11715. For the past few weeks, the Dow is failing to surpass the key hurdle area of 11720-11870, (see chart). However at the same time it is being supported near 11.3k area. This standoff is likely to continue in the next few trading sessions, before a final break (above 11.8k or below 11.3k) mostly downward.

Last bullish attempt?

Bse Sensex 14564

Negative <>

Last week we had mentioned that “expect a corrective up move towards 14.7 -15k in the next few trading sessions; keep a stop of 14150 for long trades”. Achieved 14672, just short of our initial target & went further to broke stop. Last week’s “hammer” pattern (weekly) requires consistent trading above 14.6-14.7 for the “bullish” implications, otherwise, Friday’s sharp rally is most likely to fizzle out, here while creating a new hurdle area (14675-14825) for the bulls. The directional trend (primary) remains decisively bearish with repetitive failures beneath “neckline” of H&S pattern. In short, in line with the symptoms of ‘protracted’ bear faze, the Sensex is likely to remain range bound (14.2k-14.8k) for some more time (best case scenario) or continue to slide towards next target objective of 13.7-13.5k. On the bullish side, cl >14825 is must, to head higher, once again, in a testing area of 15.3-15.5k.