The above chart snapshot clearly shows the BSE-Sensex after its recent breakout from the intermediate channeled downtrend (From January 2015 to mid-June 2015). The upside breakout was on the back of 2 back-to-back upside gap up actions with the last one being around the 27200 level.
This has been tested in the subsequent drawdown action and was defended successfully by the bulls with that day recording a long shadow pattern on the candlesticks chart.
That said, the future moves depend on the immediate upside resistance at the 28084-28200 levels and the recent gap-up support zone at the 27200 levels. So thats about a 800 point range on the index. A breakout on either direction would imply a move of atleast that magnitude (800 points).
At this juncture i would wait for clarity before trading the index.
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