Guessing the top thru the Magic Numbers

Let's look at the Magic Numbers at play on the Sensex. This exercise will be split into 3 parts - The Feb Correction, The March Bottom and The June Breakout. For the 'Feb correction' all numbers are in place and they are being used to show how important these numbers are. The 'March Bottom' and 'June Breakout' are still ongoing and the top is assumed at 15675.

The Feb Correction:
This can be seen from the charts and it is self explanatory. Starting at the top of 14724, the 38.2%, 50% and 61.8% stand out as very important numbers to the 100% mark at 12316.

The March Bottom:
This number sequence starts from the bottom at 12316 and the top is assumed at 15675. With this in mind, the numbers work out really well. We see:
1. The 61.8% mark acts as the first resistance to the upmove.
2. The 38.2% mark acts as the first support to the upmove.
3. The 50% mark now acts as the support to the upmove.
4. The 61.8% mark now acts as the final support to the upmove.



The June Breakout:
This is actually the Magic Numbers in the 68.1% to 100% region of the 'March Bottom' chart. We see:
1. The 0% offers the first strong support to the breakout.
2. The 38.2% mark sees the close of the doji.
3. The 61.8% mark offers the final support to the breakout.