The Sensex has shown a quick rise since hitting a low of 12514 points. A bullish 'Island Reversal Gap' on the charts appeared between 14510 and 14519 points, covering 22 trading sessions, which usually signals a positive medium-term trend. However, the index has hit a strong resistance zone between 15026 and 15390 points. Key technical levels include the monthly mid-point of June 2008 at 15026 points and the 50% retracement level of the May peak at 15124 points. If the Sensex closes daily below 14104 points (close on July 22, 2008), the positive outlook would be reversed. This could lead the market down to 13513 points, the 61.8% retracement of the recent rise. To continue the uptrend, the Sensex must break decisively above the resistance between 15130 and 15390 points and avoid filling the bearish Island reversal gap between 14484 and 14568 points. If successful, higher targets between 16618 and 16860 points could come into view. These levels correspond to the 78.6% retracement from the May peak and the 50% retracement of the fall from the January 2008 peak, respectively. “The ongoing upmove would continue if the bearish island gap is not filled and key resistances are broken,” said the VP of technical research at Darashaw. Until then, medium-term confirmation is awaited before taking a positive view. For more market updates, visit ETMarkets.com or subscribe to their Telegram feed for the fastest alerts.