BSE Healthcare Index

The BSE healthcare index has managed to pull back to its 20-week moving average near 20,600 and we will watch if it manages to hold this level on a closing basis till the end of the week. If it does so then ideally wave 5 is not complete but maybe subdividing into 5 waves. Therefore the most recent move would then be marked as wave 1 of 5 and the decline as 2 of 5. Wave 3 of 5 should follow on the upside. For the record wave 2 of 5 came very close to the 61.8% retracement of wave 1.