Using Andrew’s Pitchfork technique, taken from the top of 21206, 14677 and 17735, we find that the centre trend line support was witnessed in the market last week. It recovered from the centre line of the downward channeled move. As it has taken support of the centre line and if it does not violate it, then we could find the resistance of 13782 getting crossed. Later, we could find price move towards the upper channel line. If it fails to sustain and cracks the centre line, then expect a slide down towards the lower channel line.
If we take the 1.27 downside retracements by considering the points 21206, 14677 and 17735, then the ratio level is placed at 10853. The 1.618 level would be at 8967.
Therefore, it is equally important for the market to sustain at the current level and move up. If this time, we see violation of 12822 then it will not only test 12671-12344 but could also violate it and move down further towards 10853. The Sensex has some leverage of 12671-12344 which can act as a buffer.
Using Andrew’s Pitchfork technique, taken from the top of 21206, 14677 and 17735, we find that the centre trend line support was witnessed in the market last week. It recovered from the centre line of the downward channeled move. As it has taken support of the centre line and if it does not violate it, then we could find the resistance of 13782 getting crossed. Later, we could find price move towards the upper channel line. If it fails to sustain and cracks the centre line, then expect a slide down towards the lower channel line.
If we take the 1.27 downside retracements by considering the points 21206, 14677 and 17735, then the ratio level is placed at 10853. The 1.618 level would be at 8967.
Therefore, it is equally important for the market to sustain at the current level and move up. If this time, we see violation of 12822 then it will not only test 12671-12344 but could also violate it and move down further towards 10853. The Sensex has some leverage of 12671-12344 which can act as a buffer.