Monday, October 25, 2010

Power & Respect for 123.6%!

We marked on Sensex on 27th September that wave [iii] should end near about 123.6% of wave [i] given the significance of this fibo level in Indian Markets
This is precisely what happened. This level of 123.6% * Wave [i] was tested on 4th,6th, 13th & 14th October and prices failed to close above this level which is at 20700 and started retracement in form of wave [iv]
We have been bullish on Sensex since it broke above 18250. The major rally of final wave 5 is also over but over short term basis we still have enough room for upside rally.
Daily chart shows that RSI took support on upward trending trendline and Sensex completed minor wave (iv) of wave 5. We have either started wave (v) that will take us atleast till all time high of 21500 or shall start soon after one minor dip.
Key support level over coming week lies at 19800. As long as this level is intact we remain bullish and shall move up atleast till 21500, ALL TIME HIGH!

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