The SENSEX and the FIBONACCI relevance.
Fibonacci retracement analysis plays an important role in technical analysis , expecially to identify support and resistance. The important ratios are 38.20% and 61.80% retracement of the price move (You can find more details on fibonacci in my book)
In the above chart of the Sensex, we observe that it has taken support at the 61.80% fibonacci retracement level. the move is marked from the recent low of 14680 on 18th March and the recent top of 16450 on 28th March.
The 61.80% fibonacci retracement level of this move comes near 15300 points and the Sensex has taken support at this level thrice during the past 10 trading days.
Thus at the present juncture we must keep a close watch on this 15300 Sensex level. If it breaks , expect some more selling and consequent fall.
On the upper side, a break above 16075 Sensex level should lead to a short term upmove to 16750-17000 area.
For the coming few days these will be the levels we should be watching !!
Happy trading !
CA Rajiv D Khatlawala
2 comments:
Hi Rajeev,
I'm totally impressed with ur technical analysis. I have tried them in market and it really worked.
I want to have your email id and contact number so that i can talk to you personally or if u can provide me with ur yahoo or gmail id so dat v can chat during the market timings.
My name is Abhishek and i'm from Jaipur.
Hope to hear from you soon.
This blog contains my email address where you can contact me
Have a nice day
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