What Next ? - Stock Market - Technical View

Fibbonachi Number calculations in predicting stock market is widely used. Here is how these calculations are being made.

For Sensex,
Recent high is 21004
Recent Low is 8325
The difference between these two is 12679 points
38.2% of 12679 points is 4843 points.
Deducting this 4843 from 21004 gives 16160, which is called as 38.2% retracement
And 61.8% of 12679 is 7835 points.
Deducting this 7835 from 21004 gives 13168 points, which is called as 61.8% retracement.


'Usually' stock market takes support at 38.2% or at 61.8% retracement levels.
Hence markets closing at 16400 on 18th august, is close to 38.2% retracement levels.
But with 'Global Meltdown' of 5% in stockmarkets today @ Europe or USA indicates we may slice below 16160.

Hence, hold your breath and your cash to invest at much lower levels.
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