In the last comparable period of increase in the Sensex Index, we trace out the decline from the July 19, 2010 peak to the January 1, 2012 low to generate a potential downside target for the current period.
As we can seen in the July 19, 2010 – January 1, 2012 period, the Sensex Index had a range of 20,917.03 to 15,406.93 or a decline of –26.34% from the peak. A similar decline would bring the current level of the Index to 45,848.33.
Timing is an issue that most people are interested in. We have not been as successful with such an indication other than to refer to the last range in time for the same price action.