Weekly analysis : FALLING CHANNEL BREAKOUT - 03/02/2012.
FALLING CHANNEL BREAKOUT – 03/02/2012.
15 MONTHS CONSOLIDATION COMPLETED.
Finally it has happened; the market after moving in a Falling Channel for more than 15 months, gave the much awaited breakout. In the wake of this Bullish breakout, the entire fall of the last 15 months seems to be a consolidation of the entire upmove from the low of Sensex 7697 to a high of 21108 and Nifty from 2252 to 6338. Long term trend has reversed as the market has completed a bullish consolidation pattern in the form of Falling Channel on the higher timeframe chart. Besides this, the indices have managed to give a close above the long term average of 200dma. In the higher timeframe chart, a higher top higher bottom formation is yet to happen. First step in that direction will be a crossover of Sensex 17908 and Nifty 5399 which will signal a higher top formation on the weekly charts.
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