On the charts, the sensex has come to an interesting position,
The reasons are many
Firstly, the sensex has been positive throughout the week.
The first resistance is placed at 19870 where it had made two consecutive bottoms on 21st and 29th October. Interestingly this is the 23.6% retracement shown by the Fibonacci measurement.
If this resistance is not broken, the markets can drift back in the same channel to 19135 or so.
Another factor is the double bottom formed as shown in the circle.
For it to complete the pattern, the 20050 level has to be broken convincingly.
A rally is possible after that.
Two projections can be concluded from this which are shown in the chart.
Whatever the outcome, the bottomline is: 19870 is the levels to be watched out for.
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