Technical view by Nooresh

Global Indices re-test of recent bottom or another 3-5% down before staging a sharp reversal

In my presentation had mentioned above Dow 9800 and FTSE 5100 which are close to being broken down.

On a little detailed analysis i can see strong band of bottoms at 3-5% lower then current levels which clearly shows a strong support zone.

Also RSI and other indicators do look highly oversold.

The current corrective move could be considered a retracement of the whole rally from 2009 lows. 38% retracement also comes in this band.

Similarly for Sensex 15600/15900 the same bands for Dow comes to 9450/9800 FTSE 4750/4850 and Dax 5350/5500.

Below 9450 on Dow, 15600 on Sensex, FTSE 4750, DAX 5350, Hang Seng 18500 is where the medium term trend could get into doubts --- Make a note till we dont break this remain bullish for a bounce and turnaround.




Bottomline: Expecting markets to bottom out at 3-5% lower in worst case from current levels or at least a sharp bounce.

Article by Nooresh Merani

Nooresh has written 2532 articles.

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{ 2 comments… add one }
  • johnson May 26, 2010, 13:38

    ” at least a sharp bounce “……sir where do u see the bounce upto..

    • nooresh May 26, 2010, 17:26

      Upto 16800/17400 roughly we will see as it comes.


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