Track trends of NSE Nifty, BSE Sensex, Stocks &

MCX Commodities in India

This blog is dedicated to track trends of BSE Sensex, NSE Nifty, Individual stocks and commodities traded on the Indian
Stock and Commodity Exchanges. TrendCues.com endeavours to forecast the market trends using Technical Analysis
tools on online price charts.
SATURDAY, JANUARY 17, 2009

Sensex consolidates between 9000 and 9500

Sensex picked up the bullish trend when the 20 day WMA crossed over the 50 day WMA from
below at 9483 on 19 Dec 2008, the day when Sensex closed at 10099.91. That was the second
consecutive close above the dream 10000 mark following the previous day.

For fundamental reasons (Satyam stock fiasco) the market lost a record 750 points in one single
day on 7 Jan 2009, when Sensex closed at 9586.88. Thereafter sensex is hovering above 9000
mark and consolidating towards 9500, the point where strong support offered by the 50 day WMA
is available.

The 20 day WMA seen pointing down to cross the 50 day WMA from above, which is a bearish
note. But the prices are seen moving towards the 50 day WMA signalling a strong support
prevailing at current levels. As sensex finding support at current levels, it would be wise to
consolidate long positions to reap the benefit of sensex moving towards the dream 10000 mark
again.

Technically speaking, with Sensex consolidating between 9000 and 9500, the earlier forecast of
bullish trend for 2009 still stands valid.

Labels: bse-index, market-outlook, sensex-forecast, sensex-jan-2009, technical-analysis

posted by TrendCues.com @ 5:00 PM 4 Comments Links to this post

SUNDAY, DECEMBER 21, 2008

Sensex turns bullish for 2009

Sensex has seen a strong uptrend in the past one week and closed consistently above 10000
points in the last two trading sessions. The following developments confirm a bullish trend for
Sensex in the short term:
 • Strong close above 10000 points
• 20 days Weighted moving average (WMA) cutting the 50 days WMA from below (Refer
Circle-3 in the image above)
• Triangular formation break-out at top (Refer Circle-2 in yellow in the image above)

Now lets measure the momentum of this bullish move. In other words what is the potential
upswing that one can expect out of this bullish trend set to take off in the short term.

The triangulare formation holds the key. In technical parlence, the points forming the triangle are
measured to calculate the potential movement from the point of break out. In this case the
triangle formation can be considered to have formed with 11800 on top (Refer Circle-1 in blue)
and 7800 at the bottom. Therefor the potential upside move is 4000 points from the point of break
out. Roughly 9200 being the point of breakout (Circle-2) and the break out is on the top side, the
market has the potential to move 4000 points from 9200 points. That fixes a target of 13200
points for Sensex in the near term (about 1 to 3 months from the date of break out).

While 13200 is only a target for the potential upswing, it is advised to book profit at every high
touched by Sensex from the current position until it is a confirmed trend reversal with strong
indicators for a prolonged bull phase above 14000 points.

Labels: bse-index, market-outlook, sensex-forecast, sensex-jan-2009, technical-analysis

posted by TrendCues.com @ 11:09 PM 2 Comments Links to this post

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Previous Posts

• Sensex consolidates between 9000 and 9500

• Sensex turns bullish for 2009
• NSE Nifty Technical Analysis
• BSE Sensex Technical Analysis
• Sensex outlook weak for next week
• Sensex Targets 12000 in a downward channel
• Sensex outlook bearish for short term
• First forecast on Trendcues.com turns success
• New Topic added recently
• Sensex breaches support at 16000

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market analysis and trend forecasts expressed or implied herein, are for informational and educational purposes only. Any
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What Is Active Trading?

Current Quotes
& News That
You Can
Use...Today!

Can you make

enough money
trading stocks in
today's stock
market to leave
your current
job? Certainly!
Of course, there
is also the risk
that you may
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financial debt
from losses as a
result of picking
the wrong
stocks.
Understanding
the difference
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charts, stock
options, short
sells, limit buys
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Let's have a
quick look at a
few of these
terms to help get
you ready to
start trading
stocks.

You'll read in
the news
everyday about
stock options.
These financial
instruments are
usually best left
to experienced
traders who
don't mind
taking more risk.
A stock option
allows the owner
to purchase
shares of a stock
at a specific
price point. In
today's stock
market company
executives will
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compensated for
their work by
being issued
stock options.
For example, if a
CEO receives
100 000 options,
he may be able
to buy them as
soon as the share
price moves
above say,
$0.50. He
doesn't have to
exercise them
right away. Lets
fast forward the
clock ahead a
few years, and
the company's
shares now trade
at $1.50. He has
the option to
purchase the
shares at $0.50
and sell if he
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open market -
making himself
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profit. Of
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Options can also
expire, so in
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Experienced
traders can also
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however, the
stock that the
trader purchased
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trade goes the
other way, its
the covered call
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selling is simply
the act of
borrowing
shares at one
price, and
buying them
back at another
price, ideally
lower.