MR. VENKATESH HAS SENT ONE BEAUTIFUL CHART WITH HIS COMMENTS.
GO THRU IT. IT IS MATCHING WITH MY 5 SUB WAVE CHART READINGS.
PANKAJ SHAH
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Dear Pankajbhai,
Please find the chart attached showing weekly RSI from bull market beginning in 2002-2003. We are nearing and very fast approaching the RSI levels of 75-78 . If we look at all the previous occasions when the RSI did go upto that point, the Sensex corrected by atleast 30% from the highs (if we take the high and lows of these times). This time I have a feeling the high may occur at the levels of maybe 17,800 - 18,000 on the Sensex (if the present rally continues without a fall). From thereon, a 30% correction could very well take us back to 12,600 levels (70% of 18,000). This may happen slowly over a period of 3-4 months maybe till Feb / March and not as fast as the fall from 21K. We have to remember that in all the previous corrections we were in a bull market so corrections stopped at around 29%-30%. As of now if global conditons go bad, the correction maybe more severe here. Please do let me know your views too sir. I am learning from your very valuable posts on the groups.
Many Thanks,
Venkatesh
