An up­side break­out may re­sume above 36555

Money Times - - Trading On Technicals -

Side­ways volatil­ity con­tin­ued on the daily and weekly charts. The Sen­sex has closed in op­po­site di­rec­tions on al­ter­nate weeks since 30-11-2018. Last week, an In Bar was formed on the weekly chart, which means that the move­ment was within the range of the pre­vi­ous week’s high and low in­di­cat­ing side­ways mar­ket.

The volatil­ity band re­mains 34400-37000.

Last week, the Sen­sex opened at 35971.18, reg­is­tered a high at 36269.30 and fell to a low of 35753.49 be­fore it fi­nally closed the week at 36009.84 and thereby showed a net rise of 314 points on a week-to-week ba­sis. The weekly can­dle is an in­de­ci­sive doji can­dle, which sug­gests side­ways move­ment.

Daily Chart

The daily chart bands have nar­rowed down and we may wit­ness a ma­jor di­rec­tional swing soon. The nar­rower band is 35382-36269. On the daily chart, a break­down will re­sume be­low 35382. An up­side break­out will con­tinue to draw re­sis­tance. An up­side break­out on the daily chart is pos­si­ble above 36285 with fur­ther re­sis­tance from the lower top and sup­ply zone of 36381-36555.

Weekly Chart

The re­sis­tance lev­els are placed at 36268-36285-36555 while the sup­port lev­els are placed at 35752-35010-34462. Re­sis­tance will con­tinue at the higher range. Sell­ing/ sup­ply/ profit-book­ing will emerge un­til a break­out and weekly close above 36555 is wit­nessed at the end of the week.

A down­side slide with sup­port lev­els of 35752-35010-34462 with volatil­ity is likely.

Half Yearly Chart

For cal­en­dar year 2018, the se­cond half of the yearly chart shows higher low and higher high since the low of 22494. The last 6 months range is 33291-38989.

In cal­en­dar year 2019, the move­ment will be within the range of 33291-38929 for the first six months and the lower range may at­tract sup­port. A break­out from this six months range may be wit­nessed in the se­cond half of the year.

The two half yearly lows are 33291 and 32483. Ex­pect sup­port and buy­ing when­ever the sup­port range of 3329132483 is at­tained.

BSE Mid-Cap In­dex Weekly chart:

The re­sis­tance lev­els are placed at 15360-15481 while the sup­port lev­els are placed at 15027-14907. A break­down may emerge be­low 14907. The over­all ob­jec­tive re­mains to exit long po­si­tions till the lower top of 15601 is not crossed.

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