this morning NIFTY50 touched a new ATH @ 11171.55and it is possible to count a five-move up as you can see at chart. I labbeld this a wave ((3)), green and the odds are likely high that a top a wave ((3)) is in plce and a shortterm correction ahead. Targets for that case is at 11009.3, the red at chart.If the top is at the other hand a wave ((5)) the target surround at ~10666 zone, were a wave 4 of lesser degree has endet. Between both targets we have some resistance levels and it will be interesing if they are likely to act as support.
A/D-Ratio was at 1.27 while TRIN was at ~1, what I interpret as neutral.
At the upside we also have more potencial with an open target for NIFTY at ~11399. In terms of time NIFTY is very „early2 to end a impulsuive move, but it is still accetable. An possible timetarget suurands at Feb. 07(to my view)!
SENSEX was the Index which lead the run of the last days, while NIFTY200/500 were „lagging“! By observing USDINR you can see, that USDINR failed to make new lows while NIFTY and other Indexes are still running in there bull market. To me it look as a major divergence which is close to observe.
Be prepared for the next move.
Have a great week.....
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!
Will check later. Will send a comment later that day.
Yesterdays low is either wave a of a flat correction or of a triangle pattern. A close below the blue dottet trendline of the channel indicate that wave (4) red is still to develop!
thanks. Hard work..;-)
The fourth could be on from tomorrow and we could yet to see the 5th of the 5th post / on budget day. After that the correction a-b-c as you said.
Next two days should guide according to the depth and behavior at levels indicated by you.
1. What is the Minimum Target for Wave 4?
2. What is the minimum time period of Wave 4 assuming that Wave 2 went on for X Amount of Time Period in an A-B-C
3. What is the probability that Wave 4 will be a Flat since Since Wave 2 was an A-B-C
Thanks and Regards
Following you has been a pleasure indeed.
1. Minimum target for a wave is at 11009.3! Another target surrond at ~10666 area!
2. Around Feb. 16 (from my view)!
3. Wave 4 often develop as a flat or a Triangle! It is possible to count the wave 2 correction as a ZigZag. By observing the alternation between waves both patterns are possible and it is still to early to say which one will be the
one. This need some hours, may days to develop!
Thank you for your kind words.