Wednesday, August 13, 2014
The corrective fall from 7841 to 7540 showed a distinct 3-wave fall.
The fall from 7752 to 7540 was labelled with 5 sub-waves.
We, hence, looked for a retrace upto 7664-75, above which market could rally anywhere and it broke past the resisting trendline, again at 7675.
The reliable 9-Day rsi suggests of a reversal from its critical support which would depend on prices holding above 7625-35(50dsma) in the coming days. There is also a fast rise set up developing between 5 & 50 dsma.
Strength has returned with prices closing above 50 dsma @ 7624-34 and would continue staying above 7663, 2-Hour Low.
Minor resistances are in the region of 7749-55, above which 7799-7809.
(Last rise retrace considered from 7661)