Friends
i have attched two charts today.
technical observations:
we r in uptrend since last 7 dys. monday 8th trading day a fibo no, chances of reversal high
rsi(5) is at 77, as per trendline resitance comes at 80
rsi (14) at 62, as per trendline resistance comes at 64
we are trading at PE of 21+ as per attched chart.historically we have corrected from 22 zone except euphoric years like 1992/2000/2008.time to be cautious and to liquidate holdings in next week.
mid and small cap r outperforming since couple of weeks. sensex has moved in range of 13500 to 15500 apprx for 3 months . in 2007 nov-dec sensex moved like this in range of 18500-20500 for 2 months and gave a break out upto 21200 with help very few stocks and market corrected heavily from there.
next week trading range cld be 15200-16200. on break of 15200 we can go for big correction bcz that will violate upmoving trend line running from march lows.chances of market topping out around 16500 are bright. trade accordingly.
i may go wrong in my views.
