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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). The SENSEX had another narrow day on Wednesday
with the Slow Stochastic starting to turn down for a cross and switch in the
short term trend. But the MACD is still underlying bullish. The high correlation with Wall Street is still a
very strong factor but as you can see from the third chart but this is
starting to break down a little. As I have been saying for a while, the longer
term bearish factor is the fact the price action had penetrated the second
speed resistance line and since we have had a broad sideways move. We are also right on the 200-day Moving Average
line and a break of that would be bearish. 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. 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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