With rising tops and bottoms after such a bull run is hard to believe the market will fall, isn’t it? It’s getting close though. With overseas markets up on Friday, our market will open up, but will need to overtake first resistance at 5915 then the spike high at 5946.

Overall there is this bearish Rising Wedge formation just hit at the lower end on Friday (see below chart).




Chart Pattern Rising Edge
Chart Pattern Rising Edge


Also, there is the huge resistance in a range of 5980 to 6040 going back to 2007-08, as you can see from this monthly chart.


So, my take is the market will find a wave 3 high this week between 5920 to 5960 (200% Fib extension), then will brake the lower wedge formation for a deep pull back. There is possible to have the last run (wave 5 ) to the top of the “wedge” and resistance 5980-6040 between March and May before a possible change in trend.

For more chart patterns formation click here.