Monday, September 6, 2010

Final leg up Not Yet Complete!

Sensex broke down out of wedge as predicted but we were expecting prices to reach atleast start of the wedge near 17400 levels but prices moved down only in 3 wave structure indicating the intermediate trend is still "UP"
Prices made a low near 17820 and turned back up during mid week, a 23.6% retracement level of the rally from 16000 again proves importance of this Fibo level in Indian markets. Failure of price to retrace even 38.2% suggests that the final wave 5 of the entire rally since October 2008 is still ongoing and we probably completed only wave [i] of wave 5.
This scenario calls for some substantial up movement to come in next week in form of wave [iii] of 5
It will be interesting to see how prices move next week and whether up move is met with additional selling pressure or is it a smooth journey.
Advance decline ratio also improved substantially in second half of the week
Expect some good movement on UPSIDE in coming week and move above 18450 will provide further positive confirmation!

1 comment:

  1. Could be the alternate for me. I m seeing this as an irregular correction.
    +1 as nifty reaches weekly channel top
    -1 as Reliance started participating in up move..