Fresh Intermediate Downtrend started with Initial Target near 14,000
Posted on March 17th, 2008 in Personal Finance) by Motilal Oswal Securities Ltd |
Sensex opened with 433 points downward price gap at 15,327 and slipped sharply breaching 15,000 mark. In comparison with previous day’s close, Sensex lost 950 points forming day’s low at 14,738. As per the Elliot Wave Theory, the downward 3rd wave is started from 18,137 and reached 15,362 i.e. 2775 points in earlier fall. The bounce back after this fall was seen up to 16,683 and the current’s downtrend target, (16,683 – 2775 = 13,908) is coming near 14,000 level. In the current 3rd downward wave, a sharp fall is generally seen hurting the sentiments, as this is considered as most devastating impulsive downward wave. If any bounce back is seen, the level of 15,230 will now act as strong hurdle and any bounce back in the Sensex should be used for short selling with appropriate stop loss. The upward trend reversal level is still maintained at 16,800 on closing basis. One should avoid any sort of short term or intraday buying positions as the
momentum of the fall may be seen with higher velocity.