Short Covering ...........Bear upmoves are fast...
Dow Jones Dow Jones Technical View :
In the last update had discussed about a good pullback on Dow Jones could target 6900-7100 and 7450 on the upside.
Current View :
The
pullback has been sharp just like any bear move which has done the
minimum pullback of 6900-7100. The upmove may face major resistance
around the 7450 ( 50% ) zone. So the short term upside is capped
around 7450 and can reverse even before that.
The
indicators did show a good positive divergence around the 6500 mark
which meant a pullback was due even though it may or may not be a good
short term bottom.
Sensex Sensex Technical View :
A
strong move after a meek reversal was surprising on the index but this
is how bear upmoves are supposed to be. The move has crossed the level
of 8630 ( previous lows ) comfortably which indicates quite a good
amount of short covering to be a reason.
Technically
after a breakdown from a long sideways or triangle formation there is
generally a re-test of the breakdown line. The orange line shown on the
chart shows that. The level roughly comes around 8850-8950. If the
upmove doesnot stay above this level or doesnt cross the down channel (
blue ) would imply the downtrend continues to be strong.
Fibonacci
retracement comes around 8950 and 9100 odd zone. 50/61.8 %. The upmove
has created 2 gap-up moves in near term and another one might lead to
exhaustion ( can be shorted generally for day trade). Gap levels
8440/8260 may be support zones then.
So in the near term would face resistance in the 8850-8950 band ( fibo+ line ) and 9100-9200 ( fibo.
Regards,
Nooresh
09819225396
noorrock2002@gmail.com
For queries and more readers can add me on Yahoo Messenger ID will be in online mode when possible to chat-- nooreshtech
http://nooreshtech.blogspot.com/
http://nooreshtech.blogspot.com/
|
|
