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Reuters SENSEX Technical Analysis – By
Phil Smith |
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Daily Charts |
Weekly Charts |
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Near
term (daily chart). A bit of support on Monday with the market
stretched to the downside as you can see from the RSI. A very high correlation
with the The MACD is aggressively bearish still and the
intermediate trend is down. The Parabolic-SAR also bearish. You can see how
well both have signaled this latest downturn. Most important is the high correlation with Wall
Street and the scale of the possible declines there. Watch Wall Street. The market was
struggling to make upside because of that relatively low volume which has
been falling away steadily as you can see. As I have been saying for a while, the longer
term bearish factor is the fact the price action has penetrated the second speed
resistance line as shown on the second chart and that is a break of a three
month uptrend line. It’s getting to a stage where our topping pattern
is looking more formed. With the volume tending to go lower this pattern
looks like having some validity. Obvious near term supports as marked on the top
chart and we have bounced off the very old 15,577 support line nicely last
September. This is very old support and a good example of how it is wise to
keep old key supports drawn on the chart as they often come back into play.
I’ve marked it in red on the second chart and you can see how significant it
has been in the past in terms of support and resistance. In terms of the S&P 500. As per the last
chart you can see the correlation has turned high again and the If you are an investor in the See the glossary link above for an
explanation of the studies used above.
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Reuters Market Technicals By |
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