in last few mails i have been mentioning stop loss of 16578 for all long positions. yesterday we made low of 16608 and closed at 16859.level of 16608 is very close to 75% of rise from 16210 to 17790. its also imp weekly closing support area.
as per our 1-2-3 pattern if we break 16578 our stop loss will be violated and it will be case of sell on rise till we see higher bottom and higher top formation.
dow charts are also attached herewith.previously we had seen good up move as per 30.10.09 chart from 50 ema support area.now it has reversed from long term trend line resistance. so chances are there dow have made an intermediate top.
what next?
if we break 16578 we have to assume that sensex has also made in intermediate top at 17790 and we can see further corrections. next strong support areas are 16k and 15600.
more over 100 dma is also shown in chart. during fall of 2008 i have been referring in my mails that we are facing strong resistance at 100 dma. and we shd be positive on our markets when we close above 100 dma. similarly during rise of 2009 100 dma has given strong support to our markets. we have closed just above it. violation of the same will be bearish for coming days.
dec qtr earning season is near the end. further moves will be as per stocks performances and expected performance expectations.
