Rise con­tin­ues above 31522 clos­ing

Money Times - - Trading On Technicals - By Hi­ten­draVa­sudeo

Last week, the Sen­sex opened at 31156.03, at­tained a low of 31017.10 and moved to a high of 31460.69 be­fore it closed the week at 31360.63 and thereby showed a net rise of 439 points on a week-to-week ba­sis.

Daily

Af­ter os­cil­la­tion around the Daily Reversal Value (DRV) in the last fort­night, the Sen­sex clos­ing de­vi­ated up from the DRV last week, which sug­gests a di­rec­tion move­ment along with the higher high and higher low con­cept. The Sen­sex is back test­ing the last peak of 31522.

At some point last week, it seemed that the Sen­sex could go in for a deeper cor­rec­tion if it sus­tains be­low 30680 but in­stead it moved higher above the DRV.

Ex­pect re­sis­tance around 31522 since profit-book­ing pres­sure can­not be ruled out around 31522. On a sus­tained rise and close above 31522 with a bullish can­dle, ex­pect the Sen­sex to move higher to­wards 32038 at least. It may scale up to 32889.

We have seen 5 Bars since the low of 30680. Of the 5

Bars, we wit­nessed 3 Up bars with higher high and higher low. The bias is up on the daily chart till the net count of Bars is pos­i­tive. The net Bars are +3 on the bias the­ory.

Weekly

The weekly chart marks a swing higher bot­tom as a re­sult of the higher low and higher high on the weekly chart in re­la­tion to the week that ended on 30 June 2017. The weekly close was the high­est weekly clos­ing ever till now. Over­all, a break­out and close above 30024 has been wit­nessed and the Sen­sex is liv­ing a life above 30024 and

get­ting ha­bit­u­ated to sus­tain at higher lev­els with mi­nor volatil­ity.

As a re­sult of a break­out above 30024 wit­nessed in the year 2017, the Sen­sex is even­tu­ally mov­ing to­wards 34600 with in­tra-day, in­tra-week and in­tra-month cor­rec­tion at times on its road to­wards 34600. Sup­port is at 31279-31098-30680. A deeper cor­rec­tion could re­sume be­low 30680 and as long as 30680 is not vi­o­lated, the mar­ket may con­tinue to move higher with volatil­ity.

Trend based on Rate of Change (RoC) Daily chart:

1-Day trend - Down 3-Day trend - Up 8-Day trend - Up

Weekly chart:

1-Week trend - Up 3-Week trend - Up 8-Week trend - Up

Monthly chart:

1-Month trend - Down 3-Month trend - Up 8-Month trend - Up

Quar­terly chart:

1-Quar­ter trend - Up 3-Quar­ter trend - Up 8-Quar­ter trend - Up

Yearly chart:

1-Year trend - Up 3-Year trend - Up 8-Year trend - Up

The ROC up trend has been re­stored on the weekly and monthly charts. On the daily chart, the ROC trend of 3 and 8 days is up, which sug­gests that an up­side mo­men­tum may con­tinue in the im­me­di­ate near-term.

BSE Mid-Cap In­dex Weekly chart: BSE Small-Cap In­dex Strat­egy for the week

1-Week trend - Up

3-Week trend - Up

8-Week trend - Up

An up­side mo­men­tum was re­stored as the trend line break­out is not vis­i­ble on the weekly chart. Ex­pect the peak of 15122 to be tested.

On a sus­tained rise and close above 15122, ex­pect a rally to 15820 and 17000. 1-Week trend - Up

3-Week trend - Up

8-Week trend – Up

A new high on the BSE Small-Cap in­dex was reg­is­tered sug­gest­ing an out­per­for­mance from small-cap stocks and in­dex. Ex­pect the BSE Small-Cap in­dex to move higher to 16500 and 17735. A weak open­ing and cor­rec­tion dur­ing the week 31279-31098 can be used for ac­cu­mu­la­tion with a stop loss of 30600.

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