Higher range 20659 plus to be tested: Vasudeo

Technical Analyst, Hitendra Vasudeo:

Last week, the Sensex opened at 20062.60, attained a low at 19981.75 and moved up to 20552.03, before it closed the week at 20509.09 and thereby showed a net rise of 435 points on a week-to-week basis.

The week closed the month, quarter and yearly as well. On the monthly chart, December 2010 closed with gain of 5.06%, the quarter gained 2.19% and the year gained by 17.43% over 2009.

The range for 2011 is mentioned in the table below for the Sensex and Nifty.

Indices	Close	Yearly	Yearly	Yearly	Yearly	Yearly
	31/12/10	Level 1	Level 2	Centre Point	Level 3	Level 4
Sensex	20509.09	11614	17071	19089	22527	27984
Nifty	6127.7	3426	5089	5713	6752	8415

The level 2 and level 3 is the high probability trading zone for 20011. Depending on the price movements during the course of the year 2011, each of these levels will get importance. Volatility during the year can see the levels of 19089 and 17071, which can certainly be a high probability if the market weaken and fails to sustain at the higher range in the first quarter of 2011.

As mentioned last week, the seller stop loss of 20400 was crossed on the weekly charts. Therefore, traders who were short should logically be out of position for the time being. If the last week