Hello Traders,
the chart gallery below shows the pattern of 4 of indias major indexes, as there are N50, SENXES NIFTY IT and N200 on a weekly timeframe. After a weeks long topping process these indexes have declined to a correction level (for example N50) a wave 4 of lesser degree. Not one of theses indexes were able to retrace to or above it`s 0.618 Fibonacci of the correction and all of them shows overlapping, choppy wave pattern. While the decline for N50 take 8 weeks down, the retracement is just running into it`s 13th week and this is to my view not a bullish behavior. Only N IT correction is in it`s 8 week to come. So the overall structure looks to my like a wave „B“ wave, which mostly implies a „sucker play“, are phonies, bull traps, speculators paradies......as R. Prechter wrote in it`s book „the Elliott Wave Principal“!
In terms of time 3 of the 4 major indexes has now room to decline to fresh new lows (only N IT is critical and need more time maybe).
So, my working assumption is a correction on a higher timeframe and the next move will occur to the downside. Internal pattern stucture of the waves let room for multiple interpretation of it, so I`m am not sure which one will develop. And as long the structure did not becomes more clearer, I will stay away from labeling the waves.
As I wrote of my last analyse for N50 the MoB level is the high of Dec 19 and this level is well above the 10900 area we are trading now.
But to name a target for a wave „B“ or a wave „2“, the 0.618 Fibonacci fromthe Dec 19 high to 10004, @11089.4 area could be one common target for a wave „B“ retracement.
If the wave pattern become more clear, we will discuss at again.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
the chart gallery below shows the pattern of 4 of indias major indexes, as there are N50, SENXES NIFTY IT and N200 on a weekly timeframe. After a weeks long topping process these indexes have declined to a correction level (for example N50) a wave 4 of lesser degree. Not one of theses indexes were able to retrace to or above it`s 0.618 Fibonacci of the correction and all of them shows overlapping, choppy wave pattern. While the decline for N50 take 8 weeks down, the retracement is just running into it`s 13th week and this is to my view not a bullish behavior. Only N IT correction is in it`s 8 week to come. So the overall structure looks to my like a wave „B“ wave, which mostly implies a „sucker play“, are phonies, bull traps, speculators paradies......as R. Prechter wrote in it`s book „the Elliott Wave Principal“!
In terms of time 3 of the 4 major indexes has now room to decline to fresh new lows (only N IT is critical and need more time maybe).
So, my working assumption is a correction on a higher timeframe and the next move will occur to the downside. Internal pattern stucture of the waves let room for multiple interpretation of it, so I`m am not sure which one will develop. And as long the structure did not becomes more clearer, I will stay away from labeling the waves.
As I wrote of my last analyse for N50 the MoB level is the high of Dec 19 and this level is well above the 10900 area we are trading now.
But to name a target for a wave „B“ or a wave „2“, the 0.618 Fibonacci fromthe Dec 19 high to 10004, @11089.4 area could be one common target for a wave „B“ retracement.
If the wave pattern become more clear, we will discuss at again.
Have a great weekend....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!