NIFTY: EDGE and WedgeThe inevitable happens, markets stunned.
We have been saying and writing, the market the moves excess ahead of the events always correct viciously than one can digest. This time is no different. The diagonal or the Wedge appearing as end of Wave 5 is sure to displace many, not talk of wedge and edge in the political din.
More so when the structure in the wave 5 of larger degree. Those who attended our sessions or seen our link will understand.
1. Forewarned is fore armed.
2. Money saved is money made.
3. This time is different.
4. Psychology of Wave 3 and Wave 5 is different, but participants behave as if they are still in wave 3.
Sum and substance don't call it broken till it is broken is one of the rules. We did break yesterday. The one-day fall is larger than the COVID fall to start with.
The Monthly candle covers the entire yearly rise and thus four-line engulfing pattern for sure. Short term frames have bounced off the lowest level that one could place in the graph and hence, that is relief for a day and not a direction.
The break of 22500 seals the move and we are here to go south. How low one has to see; it can be low 20K is not ruled out. As long as we hold 22500 close bases.
Cycles and strength drive the leaders and not other way round, be it financials or politics, the cycle of coalition is a test, and that would take time to unfold and endure, in the meantime, markets would take some bets off, and any rally would be sold.
For the day, maybe you open with gap 100-150 sell them, add them if you see 22300 bigger positional guys stops 22530 for move back to 21500.
We are still in the mood of larger moves and thus larger stops, take it as increments of 50 points.