200-day averages being tested: Hitendra Vasudeo

Technical Analyst, Hitendra Vasudeo:

Last week, the Sensex opened at 16667.02, attained low at 16659.32 and moved up to 17258.97 and finally closed the week at 17233.98 and thereby showed a net rise of 494 points on a week-to-week basis.

Last week, we had indicated that the 200-day averages will be tested. The same has happened as we saw the 200-day EMA getting tested. The 200-day EMA was placed at 17092. The close on Friday was at 17233.98. The 200-day SMA is placed at 17331. The high registered last week was 17258.97.

The intermediate lower top of 17003 was crossed and the close is above it at 17233.98.  The next objective will be to test the 200-day SMA, which is at 17331 and the next lower top against 17003 is placed at 17908.

A trend line breakout was witnessed on the weekly chart by drawing the trend line from 18944 and 17098. A fall and close below last week