Thursday, August 5, 2010

Further Caution Advised - AP

This is an inset of an old chart dated February 2008, when the bear market gained full steam. It accelerated with an Island reversal on 6th February. The island reversal gap is between 18312 and 18447. The high today is 18295.4. I have a feeling this rally can end in this zone. Be cautious untill Sensex closes above 18450.

The second image is a bigger picture of that same island reversal and what happened thereafter.
It should be noted that Reliance - the market leader is very weak! Infosys has almost made a double top today at an extremely crucial level.

KM

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