as I wrote Nov. 23 and 28 the structure of the wave pattern look more corrective than impulsiv.
Today the market has given the answer and send NIFTY50 well below my targetzone at 10292-10256, after completing a wave b of (b) pattern at 10409.55 and close the open gap from Nov. 16-17 at 10232.25! Todays low was set at 10211.25.
The pattern that occured is able to count as a 5-move pattern, so maybe wave c of (b) or wave i of c of (b)! Notice that NIFTY gaped below the blue dotted , which was support for many hours.
While is plunged deep into oversold area it is possible that a countertrend bounce has to occur within the next hours, but it is not certain. Todays low mark the .618 RT of the advance from 10094.20 -10409.55! VIX is trending higher shortterm, while is moving sideways after declining the last hours.
So NIFTY50 is able to test the lower boundary (Minuete degree) which is at ~ 10183 zone tomorow. Another target is around ~ 10130 where an open gaims remains from the close at Nov. 15!
A potencially target to the upside is at 10312, the wave ((4)) level of one lesser degree! Todays a/d-Ratio was the weakesd within the last days and weeks and at 0.13 (6/45). So nearly everthing was sold today, all bulls had leave the floor! Who will be the one to buy this marked?
Have great day
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!