Technical Analysis - Sensex

Today the news is, Sensex is up by 1,921 points so it makes perfect sense to analyse where the market is & where we are heading.

Let's look at Sensex Technical Charts

Below is the Daily chart:

We can see here, the downtrend ( red color line) is broken today. It suggests there will be market rise in coming week. Blue color horizontal line suggests the resistance line which Sensex has to face, before continuing for an uptrend.

Let's look at Weekly Analysis:

The market is in uptrend, from 2016, with some pullbacks.

But from mid of 2018, the market is in Distribution phase. The top line indicates the Rising Wedge for the market. It's a cautious signal for the next coming weeks. If the market doesn't break over 40,000 points, then the DownTrend will start for the Sensex.

Conclusion:

Daily chart suggests there might be slight rise in the market in coming days, but the long term chart suggests there is a Rising Wedge suggesting bearish. So it's important to wait for the market to show strong signal to start investing longterm.