Can SENSEX go to 6000 Levels? ..... Yes if it breaches 9000

“Sensex has breached through 10000 levels which was a psychological support for the markets. Failure to take support at 10000 on closing basis for couple of trading sessions would test 9000 in short term. Declining money flow signals strong selling pressure. In the long term, failure of 9000 would offer a target of 6000 where we have seen double bottom in 2005," said Shyam Bhagwat, fund manager at Spark Fund Management.

“The Dow Jones displays a short-term pennant, signalling continuation of the down-trend. Massive volatility reflected by the wide range of 8000 to 10000. Downward breakout would test the 2002 low of 7300. In the long term, the band of support between 7000 and 7300 represents the 50 per cent retracement level for Fibonacci followers. The money flow is downward. But be wary of bullish money flow divergence if it accompanies a sharp V-bottom on price chart," Bhagwat added.

Speaking on the precious metal, Akansha Dohi, analyst at Flexion Capital Management Services, “spot gold broke through medium-term support at $820 per ounce. Failure to test the upper border of the descending broadening wedge warns of a downward breakout. The money flow is signalling strong selling pressure. The target for breakout below $700 is the June 2006 low of $550.”

Meanwhile, crude oil is 50 per cent off its speculative July high. According to the bulls, emerging economies like India and China are still in second innings of the consumption cycle. But with oil fields impossible to find these days, the bears argue that a weak global economy reduces demand and sends prices lower.

Crude oil is testing the band of support at $70 per barrel. Expect a short retracement, but the level unlikely to hold as the global economy heads towards the recession. Failure would test the 2007 low of $50 a barrel," said Anand Panchal, CEO-Globe One Advisory.
Source: ET
INVEST Wisely ... Protect your Investments first in this market ... Keep cash in hands ...