Support of 17295 must be held: Vasudeo

Technical Analyst, Hitendra Vasudeo:

Last week, the Sensex opened at 18238.54, moved up to 18457.90 and fell to a low of 17469.97 before it finally closed the week at 17700.91 and thereby showed a net fall of 510 points on a week-to-week basis.

The engulfing bear candlestick pattern formed on 18 February 2011 proved its worth and its weight if its occurrence has good placement on the charts. We saw a pullback of the fall from 20664 to 17295 up to 18690 and then we saw the formation of the Engulfing bear. The pullback was up to 38.2% Fibonacci retracement of the fall.

Last week, we saw the gap of 17857-17752 getting covered as it made a low of 17469. The rise from 17295 to 18690 retraced in the range of 78.6%-88.6% zone of 17585-17451. The low made was 17469.97, which tested the support zone of 17585-17451.

Last week, the Sensex opened at 18238, which was above the previous week