My near-term work argues very persuasively that the India Fund (IFN) is in the early stages of recovery 35%-50% of its 10-day plunge from 65.25 to 43.35, which will represent a rebound to a minimum target zone of 51.30/60, and an optimal target zone of 53.70-54.30 prior to another loop down towards Monday's lows. My extended timeframe analysis of the IFN indicates that the May "washout" was a vicious correction within a larger bull market structure, supported by very powerful underlying fundamentals indigenous to the huge expansionary potential of the Indian economy.  In fact, to my mind, the 30% decline in the IFN is not unlike the 40% crash in the Dow in 1987, which represented a washout from 2,750 to 1,700 within a strong, fundamentally supported U.S. bull market that then pivoted to the upside for a relentless multi-year run towards its 2000 high at 11,750.  Just maybe, the Indian equity market has provided a unique opportunity to position in the aftermath of a 30% decline, ahead of a long climb to much higher levels in the years ahead?

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.