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| As anticipated, Sensex found support and did not move below the level we labeled as wave (ii) of v of final wave 5 |
| Given the weakness in the structure and failure to rally sharply even after the breakout that everyone is talking about I think we are going to develop into a Diagonal triangle pattern |
| The path for the Diagonal triangle is as shown |
| This last leg of rally has been successful in turning maximum of the remaining bears into bulls |
| The euphoria has picked up in the media as well and everyone is talking about the breakout but just to see prices still struggling and not moving up in a strong trend |
| This is just going to eat up on emotional and psychological aspect of the trader without paying much for the efforts put in |
| A completion of this pattern shall therefore lead to a steep decline as very short term traders starts squaring off their long positions in frustration of slow moving trend |
| We will update you if any variation to this pattern is developing, till then high risk traders can go long but only with a strict stop loss and also keeping an action plan ready in case of a large gap down opening! |
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