MARKET STATUS

i hope followers of blog must have enjoyed both side movements.
when we started correcting from 15600 it was mentioned in thread http://pankaj564.blogspot.com/2009/06/sell-off-from-new-high.html
that we might have started correction.and we corrected by 10% from there and we saw 14016 .

again it was mentioned in thread
http://pankaj564.blogspot.com/2009/06/market-options.html
that we may start upmove and so far we have seen apprx 800 points rise from there. we have seen good break out from triangle and sharp movement was seen as per expectation.

what next?
today we have reached near 50% retracement level 14808 when we tested 14782.
as mentioned earlier we have taken support at 34 dma and bounced. now we have reached next imp dma that is 21 dma.
so if we cross decisively this resisatnce zone around 14800 we can see 14995 next resistance zone soon.and we shd do profit booking there to buy in dips again.or due to global weakness if market opens weak we shd do buying around 14300-14400 zone for upmove.

stock specific buying shd be done.

14016 HAS NOW BECOME A STRONG SUPPORT LEVEL FOR COMING DAYS. BREAK OF IT WILL GIVE DEEPER CORRECTIONS.FOR ALL LONG POSITIONS STRICT STOP LOSS OF THIS LEVEL SHD BE KEPT.

retracement lvls

retracement levels of total fall from 15600 to 14016 are as given below

 

38.2% 14621

 

50% 14808

61.8% 14995

 

78.6% 15261

these levles can give resisatance to the upmove

break out from triangle

we have broken out from triangle on upside. target of this break out is 15100.

 

cheers!

5 DAY CHART AS ON 26.06.09

LOOK AT CHART. TRIANGLE IS BEING FORMED. BREAK OUT WILL GIVE SHARP MOVE OF 650 POINTS.