Those looking for a decent correction to buy into the Bombay SENSEX, have been terribly disappointed so far. The index keeps plodding higher and higher, and may retest all-time highs before any significant correction. Here's a look at the trendlines am watching.
Overall, the chart looks pretty bullish for the long term - potential Inverted Head & Shoulders, or Cup & Handle patterns all over. After declining in 3 complex waves from 21000 area, Sensex has rocketed skywards, and seems to have just finished/finishing some kinda wave 4 consolidation, at significant resistance area of 18000.
The latest decline from 18000 has been in 3 waves so far, rebounded right on an uptrendline, and looks set for more upside. A sustained break above 18000 will setup an advance towards the all-time highs of 21000.
A decline here would be nice!
Although unlikely, declines here towards strong support at 15500 would present a great buying opportunity. Also, it would setup a nice handle for further upside!
All the best!
Posts
