The Index broke its 200 DMA during recent past and posted swing low of 17376. The bears could not hold the Index below its 200 DMA and gradually it started its upward journey. As per Fibonacci Retracement the Index has managed to close just above its Golden Ratio. Besides it has also captured its short term moving averages on a closing basis which is a bullish sign. On a daily chart it seems that the Index has formed a Falling Wedge chart pattern which indicating the continuation of northward journey.
As long as the Index trades above its Golden Ratio placed around 18650 levels the view remains bullish. On the other failing to hold 18650 on a closing basis we may see selling pressure.
Resistance 19100-19500 whereas support at 18400-18150
We have RBI Monetary Policy review on 2nd June, 2015 which is expected to set the further tone for the Index and broader markets.
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