Break and close above the downtrendline from 5629 is a positive.Closed above the 38.2% retracement level of fall from 5629 to 4770. This opens the target for 50% and 61.8% levels at 5199-5300. Oscillators are still showing signs of continuing the upmove. Chart II shows an upward moving channel with support at 4854. If held the next leg up may be forming.If breaks the neckline support at 4530 will be in danger of breaking.
Bulls asserted themselves well and maintained above the downtrendline from 5629.A new high for the rally from 4770 was registered at 5146.However the 200 dema could not be crossed. The 20,50 and 200 demas are still bearishly aligned.One therefore needs to be cautious on longs.
Chart II shows a symmetrical triangle forming and the rally from 4770 could be the third leg up if support at 4784 holds.If it fails then test of neckline at 4530 will be tested and in danger of breaking down.
Half Hourly Chart
Rising wedge redrawn and support resistances marked.The short term trend is up with higher high higher lows and all the Emas bullishly aligned on half hourly charts.5000 will hold the key to further direction.
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