Monday, May 3, 2010

Respect for 76.4% yet AGAIN!!! Astonishing FACT!!!

In our previous blogs a few months back we have shown how cruicial 76.4% retracement levels are with respect to Sensex
We have observed 76.4% and 23.6% levels working amazingly well in past on intraday and daily charts
Sensex yet again looks like giving all "due respect" to this level but this time it is not just for a small move but the retracement for the entire fall from Jan 08 to Oct 08 has touched 76.4% and looks to have turned.
The 76.4% retracement levels comes in at 18018 and Sensex made a top of some degree (probably a multimonth top) at 18047 and closed below this level on same day (7th April 10)!
Also observe Wave 1 in late October terminated exactly at 23.6% (100 - 76.4%) level
Wave count 5 also looks complete
A gap down opening is what we expect to see tomorrow and an impulsive move below 17200 will provide confirmation that major trend is in great danger
It is time now to sit tight and see how badly complacency can be punished! Volatility is going to take control again very soon.

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