Support & Resistance Levels for the BSE Sensex

Traderji

Super Moderator
#1
Technical Trend Analysis Support & Resistance Levels for the BSE Sensex

Technical Trend Analysis Support & Resistance Levels for the BSE Sensex

Support and resistance represent key junctures where the forces of supply and demand meet. In the financial markets, prices are driven by excessive supply (down) and demand (up). Supply is synonymous with bearish, bears and selling. Demand is synonymous with bullish, bulls and buying. These terms are used interchangeably throughout this and other articles. As demand increases, prices advance and as supply increases, prices decline. When supply and demand are equal, prices move sideways as bulls and bears slug it out for control.

Support and resistance are price levels at which movement should stop and reverse direction. Think of Support/Resistance (S/R) as levels that act as a floor or a ceiling to future price movements.

Support - is a price level below the current market price, at which buying interest should be able to overcome selling pressure and thus keep the price from going any lower.

Resistance - is a price level above the current market price, at which selling pressure should be strong enough to overcome buying pressure and thus keep the price from going any higher.

One of two things can happen when a stock price approaches a support/resistance level. The first is, it can act as a reversal point, in other words, when a stock price drops to a support level, it will go back up. The other possibility is that S/R levels reverse roles once they are penetrated. For example, when the market price falls below a support level, that former support level will then become a resistance level when the market later trades back up to that level.

Please click on the thumbnail below to see the current support & resistance levels of the BSE Sensex
 

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#2
BSE Sensex breaks 4665 and 4696 support - what is the downside target

Thanks again traderji. good work.

jus keep it going on.

what is the downside target??

thanks.
 

Traderji

Super Moderator
#3
Technical Target for the BSE Sensex

Technical Target for the BSE Sensex

The downside target of the BSE Sensex breakout can be calculated as follows:

The length of the distance from the first resistance or support break to the high or low of the pennant can be applied to the resistance break or support break of the pennant to estimate the advance or decline.

This gives us a target of 4400 for the BSE Sensex.
 

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