Is BSE going to break 17000 ?

rahul das's picture

About rahul das

Author is Investment strategist at top 5 broking firm based in Mumbai.

 #

That's a great chart Rahul. There are many things to learn from this chart.

1. When market rebounded in march. If you really look at lows made in nov,dec and march there are all around 8100 level. Market tested that bottom and rebounded over and over again.

2. 15500 seems to be a really good resistance level to break. Senses tried it without success in Jun. This rally brought us around 50% up from where we were 5 months ago.

I will try to add RSI chart here to show how relative strength is trending.

This is a perfect W shape chart .

 
 #

This is question coming to mind of all of us. After breaking 15000 what's next . Are we shooting for 22000 again. Let's forget fundamentals for a while and look at charts.

bse-22-july-09_0.PNG

We are almost at same level as we were around 1 year ago. Remember it ?? Only difference is at that time moving average (EMA ) was above . Look at rend line in chart . So BSE is prtty much maintaning itself above moving avg for 3-4 months now. Next resistance level is at 15500, and if it crosses that then this bull phase is confirmed .

Enjoy trading and making money.

 

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