SSKI - Trend Watch (23 April 2007)

The Sensex has consistently maintained the lead after the breakout. The index again opened with a positive gap today and crossed the psychological level of 14000. However, it receded in later trades on account of profit booking. Volumes remained average, whereas the market breadth ended up in the negative territory.

As seen from the chart on the left, the Sensex has now moved past the 61% retracement level, which had restricted its progress for a couple of days. The index continues to move along the ascending trend line, thus maintaining its overall positive structure. Overbought nature of the Stochastics may cause a temporary halt in the momentum, but a renewed break above the upper trend line (or a close above 14000) can provide the required thrust to move towards 14450.

SSKI - Trend Watch (23 April 2007)