Analysis for 27th August

Review of 26th August

The action formed long legged DOJI indicating indecisiveness, also showing resistance at high of 15831, which achieved the target of measuring gap from 15276-15363. On 30 minute chart it broke the rising trend line and closed below the trend line by making lower highs and lower lows. It shows a resistance near to previous high. Sensex could come back again to yesterday'support 15423 or 15276, if it is not able to cross today's high, for bull case sensex need to cross today's high. Today was the 3rd day of g leg of diametric as shown in daily chart. This leg can take 7 or 11 days which is Luca's number as taken by previous legs. Also bigger targets for this leg could be 16k to 16600 which are 75% to 125% retracement of largest leg of previous fall which was considered as contracting triangle. Tomorrow being expiry could be volatile.