Hello Traders,
NIFTY50 Future has declined close to my cited price range at 17530 area. Latter week`s low was priced @ 17585! This could be all of the sidewas consolidation, or one more low is next. This low, if so to come, had a price target at 17532area!
Playing the idea of this scenario, the sideways move could be a wave iv of an Impulse wave. In this case, the next action would run up, to complete a wave v and on one higher degree a wave i of the impulse!
So after the next move, should be a correction agaion, retracing a .618 Fibo-retracement of the total upmove! To make the confusion complete (:-)) I will give you a hint at the count for N50, what I closely mean!
If an impulse upmove is completet, it would complete a wave((i)) on one higher degree. After a complete impulse in a wave ((i)), the next move is a wave ((ii)) that corrects the move to or close to the 0.618 Fibonacci retracement! This target is the most common target area in this scenario!
After this correction, a wave ((iii)) took place, that will push the underlying to a 1.618 Fibonacci extension , measured from the start of wave (i) to end of wave (i) to low of wave (ii)) with the Fibo Extension tool! At minimum, the upmove must extend above wave (iii) high, and too, it is mostly equals the length of wave (i) or extend again a 1.618 Fibo-Extension of wave (i)! Very important!!!!
So my favorite price target for an weave (v) is at the high of wave (iii), @ 17934, or it will move close to the 18k points! An extension of thes move, could run to 18300 area!
So, you are prepared for the bullish case!
A deeper decline for N50, must stop above the possible wave (i) high @ 17254 (Future) or 17207 N50. A break of this level to the downside would eleiminate the impulsive idea and opens the door for a deeper correction!
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 Future has declined close to my cited price range at 17530 area. Latter week`s low was priced @ 17585! This could be all of the sidewas consolidation, or one more low is next. This low, if so to come, had a price target at 17532area!
Playing the idea of this scenario, the sideways move could be a wave iv of an Impulse wave. In this case, the next action would run up, to complete a wave v and on one higher degree a wave i of the impulse!
So after the next move, should be a correction agaion, retracing a .618 Fibo-retracement of the total upmove! To make the confusion complete (:-)) I will give you a hint at the count for N50, what I closely mean!
If an impulse upmove is completet, it would complete a wave((i)) on one higher degree. After a complete impulse in a wave ((i)), the next move is a wave ((ii)) that corrects the move to or close to the 0.618 Fibonacci retracement! This target is the most common target area in this scenario!
After this correction, a wave ((iii)) took place, that will push the underlying to a 1.618 Fibonacci extension , measured from the start of wave (i) to end of wave (i) to low of wave (ii)) with the Fibo Extension tool! At minimum, the upmove must extend above wave (iii) high, and too, it is mostly equals the length of wave (i) or extend again a 1.618 Fibo-Extension of wave (i)! Very important!!!!
So my favorite price target for an weave (v) is at the high of wave (iii), @ 17934, or it will move close to the 18k points! An extension of thes move, could run to 18300 area!
So, you are prepared for the bullish case!
A deeper decline for N50, must stop above the possible wave (i) high @ 17254 (Future) or 17207 N50. A break of this level to the downside would eleiminate the impulsive idea and opens the door for a deeper correction!
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!