steep and from a technical point of view I'd say were are looking at a double top pattern and should look at objectives accordingly. The MACD cross is still bearish.
The neckline will cut in around 18,200 and as the objective is the distance from the neckline to the top it would take us pretty much to the 61.8 pct Fibonacci retracement of the August-October rally which has been our downside objective all along. This would bring us back to around the longer term uptrend as per the lower chart. I've marked some rough levels for the neckline and objective from the double top on the lower chart. Please note there are rough and when the neckline breaks I'll put in more
accurate targets.
Volume is the key to what's happening at the moment as volume declines during topping patterns. and we need to watch closely for a drop in the daily turnover number.
It's also interesting to note that despite the recent decline the BSE is now further ahead of the rest of the Asia markets, in terms of relative performance, than it has been since the beginning of last year. From this we can deduce that even though we have had a sideways move in the BSE since late October, Asia has performed more poorly. See the upper chart below. India has even picked up against China as per the lower chart below.
source:http://reutersindia.net/
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