NSE index clears another key resistance, may clock fresh highs

Last Updated: Tue, Sep 12, 2017 12:28 hrs

NSE index clears 10,031, the 76.4 pct Fibonacci retracement level of the correction from Aug. 2 high of 10,137.85 to Aug. 11 low of 9,685.55.

The 61.8 pct retracement level of 9,965 was cleared on Monday; the 76.4 pct and 61.8 pct retracement levels are typically the most difficult to clear.

NSE index's wave pattern suggests it rides wave 3 of a 5-wave cycle; wave 3 usually is the longest in a 5-wave cycle, suggesting possibility of fresh highs for the index.

The zone between 10,111.4, which is the 61.8 pct projection level of wave 1 and index's record high of 10,137.85 hit on Aug. 2, may forge some resistance.

A break above 10,137.85 may result in further gains toward 10,212, the 76.4 pct projection level of wave 1.

Index's trend intensity (TI) indicator shows a reading of 15; a reading of 15 or higher for this indicator reflects the market is trending, up in this case.

Formation of higher troughs by the TI indicator will further confirm the uptrend.

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