I said"although the index has seen a positive movement (since 11.8k) as per expectations, the anticipated 'ending' triangle could turned out to be a 'expanding' triangle, thereby keeping the possibility of retesting of Oct lows open; on the upside a weekly close above 14.3k will lead to change in the opinion".
We have seen Index moving upwards (>14.3k) in the initial trading sessions of the current week. The bulls had, indeed, made an strong comeback & avoided unfolding of the expanding triangle scenario. However, in the extreme short term, watch 14.7k, a break below (on close basis) will lead to shallow down move, may be towards 14.2k -13.5k in the next few trading sessions, a good buying opportunity for the medium term. On the upside 15.3k is a next hurdle (on close basis).
See the inlaid weekly close chart, the index had formed classic double bottom reversal pattern near 12.6k mark (12618 for the week ending 24th Oct and 12659 for the week ending 21st Nov- tolerance of less than 0.5%). If able to protect this double bottom, the index can lead to significant recovery as far as medium to long term trend is concerned. Remember that 12.6k is slightly below the quarterly threshold level (explained elsewhere) and the bulls need a strong comeback above 13.9k by the quarter end i.e. Dec 2008. In that sense the positioning of this 'reversal' pattern is such that it can provide a much required 'firepower' for the bulls to sustain/stay above 13.9k by the year end. Will it be able to do that? I think so...lets see who the index evolves in the next few weeks.
See the inlaid weekly close chart, the index had formed classic double bottom reversal pattern near 12.6k mark (12618 for the week ending 24th Oct and 12659 for the week ending 21st Nov- tolerance of less than 0.5%). If able to protect this double bottom, the index can lead to significant recovery as far as medium to long term trend is concerned. Remember that 12.6k is slightly below the quarterly threshold level (explained elsewhere) and the bulls need a strong comeback above 13.9k by the quarter end i.e. Dec 2008. In that sense the positioning of this 'reversal' pattern is such that it can provide a much required 'firepower' for the bulls to sustain/stay above 13.9k by the year end. Will it be able to do that? I think so...lets see who the index evolves in the next few weeks.
