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The NSE index broke above a resistance at 11,108, the 150 per cent Fibonacci projection level of the wave 1 from February 29, 2016 low of 6,825.8 to September 7, 2016 high of 8,968.7. The breakout is supported by a surge in volume as the average volume of the last five days is 34 per cent higher than the last 30-day average volume.
The breakout suggested that the index may now move towards the next and more critical resistance at 11,361 in the shorter term, the 161.8 per cent projection level. The 161.8 per cent projection level is considered critical as reversal usually takes place from this level. MACD is positive and above its signal line, seen favourable for the index.
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