we are consolidating in a tringle. actually we have to see that it
proves to be a continuation bullish pattern or wedge shaped bearish
pattern.time wise we have completed equality yesterday and we have
seen new high and seen sell off from there.break out or beak down from
this triangle will give move of apprx 2400 points in sensex in the
concerned direction.next week will be very crucial for us. so either
18800 or 12800 apprx.
i will like to add here we r observing -ve divergence in rsi,
momentum, macd so more likely to be bearish wedge is expected.but in
mkt till price confirmation not seen we cant take it for granted. we
can keep stop loss of 15357 for long positions . below that we can see
first lower bottom formation which will be first technical reversal.
more over as i have shown in other thread we faced strong resistance
at upper trendline of consoldiating triangle upper trendline as well
as in rsi(5) upper trendline. it will be interesting to see now. if we
r following a 3 sub wave move than it is completed today and if we r
following 5 sub wave move then a dnmove to be followed by upmove and
reversal.price wise we have almost achieved targets as per 61.8%
retarcement.gap shown in that chart will provide some support.
Spandan's view more valid as far as elliot is concerned. as per my
discussion with him he was to update on this weekend.
my views can go wrong.take yr own decisions.
Pankaj Shah
