A Weekly gap-up is a +ve sign, suggesting Bulls are in control.
Sensex is in an UP-trend, maintaining higher top and higher bottom formation since Dec’16, which is roughly enclosed inside the Yellow-color channel. The UP-trend, as per Dow Theory, would continue as long as Index maintains the rising channel.
Due to lack of “standard” correctives inside the rally, we suspected that the rally could be a 7-legged Running Diametric pattern, marked internally as a-b-c-d-e-f-g.
Last week we expected Index to open with a gap-up, and the breakout-like action was suspected to be the “g” leg of the Diametric, which is the last leg of any Diametric.
When Index is into the last leg of an upward pattern, further buying should be selective with limited perspective. Also, we should be looking for signs of maturity. Such a maturity would suggest not only end of “g” leg, but also end of the larger Diametric from Dec’16.
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Sensex is in an UP-trend, maintaining higher top and higher bottom formation since Dec’16, which is roughly enclosed inside the Yellow-color channel. The UP-trend, as per Dow Theory, would continue as long as Index maintains the rising channel.
Due to lack of “standard” correctives inside the rally, we suspected that the rally could be a 7-legged Running Diametric pattern, marked internally as a-b-c-d-e-f-g.
Last week we expected Index to open with a gap-up, and the breakout-like action was suspected to be the “g” leg of the Diametric, which is the last leg of any Diametric.
When Index is into the last leg of an upward pattern, further buying should be selective with limited perspective. Also, we should be looking for signs of maturity. Such a maturity would suggest not only end of “g” leg, but also end of the larger Diametric from Dec’16.
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