There's strong possibility that we could retrace the entire fall in the fall period it took to fall, i.e. 8 trading sessions. The Sensex weekly chart formed a hammer in the weekly chart which signifies a reversal pattern (Please note that the hammer can be white or black. As always, it is strongly recommended that with either candle, the short-term trader should wait for the next Candle for a confirmation candlestick that the share price is reversing direction), so I consider this weeks low as a bottom but need confirmation, also weekly chart has taken support at 50 RSI.
If it happens the retail public will be dumbstruck just waiting to enter in pullbacks....On the other hand any big correction has taken atleast 4 weeks to finish, looking at 26th may 2006 week a similar hammer was formed but correction continued 2 more weeks... so we should be on guard if in buy position have close stop losses.
something going on in IT, I expect some news to trigger a rally.
Also for a change today's provision figures show FII have stopped the selling & were net buyer both in cash & F&O.
5 comments:
Excellent TA. Good for beginners too.
Thanks Uma (Ms.RIL) :) well am a learner myself & share what I learn, please do correct if you find any flaws...
Hi BC,
You have a nice blog and a nice counter too... looks so cute...
Graphs and me are far off though.. i fathom more with my excel.
Something cooking in HLL isnt it?
Thanks Radhika, are you talking about the hits counter ?
HUL dont know about the extreme short term but the chart got damaged in this fall, many other looking much better...
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