Indices
Wednesday, December 14, 2011
INDICES: Indices: (Sitting on neckline of Bearish H&S pattern)
(NOW OR NEVER !!!!)
Sensex & Nifty both closed at 15881.14 levels & 4763.25 levels i.e. very close to Neckline of bearish H&S pattern i.e. 15800 levels on sensex & 4750 levels on nifty
Close below neckline levels this time will lead to; SELL OFF till lower levels targets in short to medium term as mentioned below.
Possible targets in final wave-C of Z.
As per current structure of fall
1. A=C & 1.618 of B (4360-4380).tgt-1.
2. In case of extension 2.618 of B (3900) tgt-2
Or else 61.8% entire retracement from low of 2525 to high of 6338 is @ 3800.
I have also mentioned about this bearish structure of H&S pattern on sensex & nifty earlier on 05\10\2011 in this page but it has not broken neckline at that time & sharply bounced back from it. This levels acted as support from last 3 times but
Break of neckline now in this 3rd attempt looks very likely, one should be cautious in market at current levels.
I have also compared magnitude of fall happened in 2008 down trend in 05/10/2011 indices page. One should looks at it to get the idea of sharpness of fall in final wave-Z down.
4700 & 4500 is intermediate supports for any kind of short term pull back, but overall trend will remain down.
One should exit long & create shorts now or any pullback as well with SL-5200 for lower levels targets.
BSE midcap already broken neckline of bearish H&S as per chart attached & leding in current structure of down fall. It closed at 5430.05 levels today. It has down ward target1-4990 & below it target2-4518 in case of extension. One should keep SL-5880 (neckline levels).