Half Hourly Chart
Climbing the wall of worry continues. What a breakout and one which sustained! The huge bullish candle should surely unnerve the bears and skeptics waiting on the sidelines. The sensex too has broken out above the uppertrendline of the rising wedge.The stategy of keeping longs going with hedges seems to have paid well. Buying on dips though was hardly possible as the dips have been too shallow.
Amongst the daily oscillators, which are still in negative divergence , the macd is in buy and Rsi14 seems to be improving having scaled it's previous peak The intraday oscillators too are in negative divergence and once again reaching overbought region.
The consolidation formation since last week could be identified as a flag . The breakout from the formation has been sharp and on better volumes as required by the definition of a pennant. The target is length of the pole which is 4580 to 4889 =310 points from point of breakout , which is 4808. 4808+310=5118.
The startegy of holding hedged longs continues. One may keep booking partial profits as and when a good rise comes along.
The 4782 level is now strong support and stop loss for longs.
Happy Trading !!