SENSEX 30
READY TO WHIPSAW 12800...

Sensex made Double Bottom at 12800. 12800 is the low of Dec 06and Feb 07 low. Now Sensex is inching towards to close the gapof 110 points (gap between 13408-13298). If the gap closes thenSensex will resist at 13534 which is the 38.2% fibo resistence of the fall of 14723 and 12800 and then it'll face another resistence 13988 which is the 61.8% fibo resistence of 14723and 12800. Now Sensex will hold the Double Bottom formationor not will be the question. If the 12800 holds then i expectsome consolidation happens between 14723 and 12800. Daily RSIis bottomed out at 30 levels, but Weekly RSI is just triggeredbelow 50 levels which suggesting that further weakness is stillthere. Well we are seeing the recent bull trendline has beenbroken out (pink line) which is connected thru the lows of12800-13300 and 13800. And another key point is that the sensex broken the 10 month Rising Wedge pattern (red lines). So taking the larger picture of supports, the key support comes at 12460 which is the 38.2% fibo support of the 8799 to 14723 rally and then 12250 which is the 200DMA support and then at 11062 which is the 61.8% fibo support of 14723-8799. Overall the picture looksvery doomy.

SENSEX - DOUBLE BOTTOM PATTERN

SENSEX DAILY CHART - RISING WEDGE


SENSEX WEEKLY CHART