The Markets have moved up in last two weeks since the start of 2012. There are Bullish signals all over. Some questions like - Have we bottomed out? Is this rally sustainable ? How far can we move ahead? What's the signal of end of this upmove? etc, may be answered by combination of Technical Methods. Below are some self explanatory charts with observations -
1. Indicators :
2. Pattern :
3. Moving Averages :
4. Fibonacci Levels :
5. Options Data :
6. FII Data :
7. Elliott Wave Analysis :
1. All the charts above have a Bullish undertone except EW which is suggesting either a Top made or one nearby .
This Rally is Non Trending ,Corrective in nature ,as the Larger Trend remains Down.
2. We may go at best to 4950-5025 levels, if not already topped out near 4900 in the last session . Close below 4700 may bring a new Low now.
3. Caution against enthusiasm for holding Longs , Buying on Dips or getting into New Investment mode . Traders should use the Rally to either get out of longs and Investors should wait on sidelines for the signals for any Bullish turnaround to appear. Few such signals for those interested in new Investments have been given in previous Posts.
4. 4780 is the key level to watch . Breach of this level in Trading may signal the end of this Upmove and then the Markets will become 'Sell on Rise' Positionally.