This time I am taking SENSEX chart to analyze. The last day of the week saw a surprising rally. The prior week saw the Head And Shoulders breakdown and a pullback rally was expected till the neck line "T1". A drop after touching the neckline is shown by the price action on Thursday. See the OHLC bar shown with the black dot placed on top. It exactly touched "T1" and closed lower. But the rally of Friday was totally unexpected be me. It has now pierced the neckline "T" and closed above. The question is whether the trend reversal has occurred or not. I would say "No" as on the close of Friday. The reason is; it has not closed above the top trend line "T2". Now it is positioned in such a way that it is ready to go anywhere. If it breaks out from here and close above 15100, then we can confirm that a trend reversal has occurred and a massive rally will result. But if it closes below 14150, then we might see the next stage of the fall.
Conclusion: Market is positioned in such a way that it could go either way.
