Sunday, September 19, 2010

Strong rally continues!

We mentioned in our previous blog that "We expect wave [iii] to last atleast till 20,000 levels. Market should give us a hint if it wants to take some other path. Enjoy the rally as long as it continues!"
Sensex continued the rally last week as well and closed exactly at 76.4% length of wave [i]
A close observation of internal wave structure on smaller time frame suggests that a minuttee 3rd wave rally might be near an end we shall see short term consolidation. Market breadth was not that promising for a day or 2 in between suggesting we might soon consolidate and enter into wave v of [iii]
It is very tricky to count the internal waves in such a strong rally and prediction of precise turning points is a challenge
So lets continue to be in the trend but taking out partial profits and following the rule of trailing stop loss!
Range of 19250 - 19300 should be acting as a support over very short term and 20000 as strong psychological resistance!

1 comment:

  1. where u expect [V]th of 5th to end ?