WILL SENSEX DO WHAT DOW DID IN 1987?

DOW from1972

DOW 1982 to 1990

There is an interesting similarity between the first phase of DOW's Bull run and the SENSEX first phase. The DOW first phase was between 1982 to 1987 where it rose from 770 to 2747 and then steeply fell to under 50% retracement level of 1616. The sensex similarly moved in the first phase of its Bull run between 2003 and 2008, it rose from 2935 to 21204 before crashing. Now it is at sub 38.2% levels at 13780 and the 50% retracement level is around 12100. The question is whether it will retrace to those levels and if it does will it again regain the lost glory eventually? Well, the technical analysis definitely suggests so. Moral of the story 'EVERY CLOUD HAS A SILVER LINING.'

NB: Both the first phases lasted for 5 years. Click on the chart to get full view.