An upside breakout may resume above 36555
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.
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.
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.