For the first time the SENSEX broke-out of resistance successfully from the high of July 07 and May 08 around 15780 on closing basis in weekly chart and should hopefully do the same in the monthly chart too. Interestingly it is forming a rising wedge (click on the chart to view it) and is likely to cruise along the wedge in zigzag fashion targeting next strong resistance around 17700-17750. This resistance coincides with first fibo target of 17740 and it should prove to be the next strongest resistance. The target of breakout from inverse Head & Shoulder neckline also happens to be the same level of 17750. Of course there will be psychological resistance at 16000 and 17000 levels stalling the up-move for sometime. The stoploss will be below the rising trendline.
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