Hello Traders,
NIFTY50 opened the day at 9881.50 (+33,9) with a Gap up, marked it`s daily high even here and trend the day with weakness to a low @ 9848.85 by closing at 9865.70 (+18.1)! Volatility shows "weakness"!
There is a little new to add.
At 9881.5 NIFTY50 exeeds ~3 Points above it`s 1.382 FibExt of wave a-b (blue) and it also touched the zone by the wave 4 of 1 @9484.35! This is a common target for a flat pattern as the 1.618 FibExt @ 9898.42 is too. So, it is possible that NIFTY will rise higher by Fridays trading to even that level or it move higher in one more down-up sequence to 9901.89 where a FibRT keep place. As of yesterday this willl be a strong resistance level for the Index.
Also it is still possible that NIFTY will rise to higher levels as a wave ii to retrace 100% of Wave i! This would be an unusual but permissible target and still it is allowed! So the MoB is 9947.80!
If this level will be achived and exeed by just one tic another pattern is on the way which I have to monitor still within the coming hours and days!
By observing the wave strucure you see that wave 2 of c shows the shape of a flat pattern. Now it is still possible that wave 4 is tracing out a triangle which fits well the alternation of wave`s! If this take place we will see a sharp breakout to higher level and an even sharp pullback below that dashed blue line. A closing price below that dashed blue line will terminate wave 5 and a sharp and longer lasting decline is just around the corner! One more possiblitity is still that wave 4 will trace out a ZigZag pattern, while wave 2 has moved more sideways! Normaly a ZigZag occurs in a wave 2, but as before it is still allowed to do so!
Again!
So infact if NIFTY start it`s decline in a Wave 3 of c we have targets around the 9600-9550 zone. More greater bearish potential exists!
Another possibility is shown as by the 4 hour chart shown by the second graph! But I do think that this is a setup with a lower opportunity! (the blue corrective count shows the alternate idea)!
Have agreat day
rubennase
Questions and Comments are welcome! Feel free to do so...
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 NSE!
NIFTY50 opened the day at 9881.50 (+33,9) with a Gap up, marked it`s daily high even here and trend the day with weakness to a low @ 9848.85 by closing at 9865.70 (+18.1)! Volatility shows "weakness"!
There is a little new to add.
At 9881.5 NIFTY50 exeeds ~3 Points above it`s 1.382 FibExt of wave a-b (blue) and it also touched the zone by the wave 4 of 1 @9484.35! This is a common target for a flat pattern as the 1.618 FibExt @ 9898.42 is too. So, it is possible that NIFTY will rise higher by Fridays trading to even that level or it move higher in one more down-up sequence to 9901.89 where a FibRT keep place. As of yesterday this willl be a strong resistance level for the Index.
Also it is still possible that NIFTY will rise to higher levels as a wave ii to retrace 100% of Wave i! This would be an unusual but permissible target and still it is allowed! So the MoB is 9947.80!
If this level will be achived and exeed by just one tic another pattern is on the way which I have to monitor still within the coming hours and days!
By observing the wave strucure you see that wave 2 of c shows the shape of a flat pattern. Now it is still possible that wave 4 is tracing out a triangle which fits well the alternation of wave`s! If this take place we will see a sharp breakout to higher level and an even sharp pullback below that dashed blue line. A closing price below that dashed blue line will terminate wave 5 and a sharp and longer lasting decline is just around the corner! One more possiblitity is still that wave 4 will trace out a ZigZag pattern, while wave 2 has moved more sideways! Normaly a ZigZag occurs in a wave 2, but as before it is still allowed to do so!
Again!
So infact if NIFTY start it`s decline in a Wave 3 of c we have targets around the 9600-9550 zone. More greater bearish potential exists!
Another possibility is shown as by the 4 hour chart shown by the second graph! But I do think that this is a setup with a lower opportunity! (the blue corrective count shows the alternate idea)!
Have agreat day
rubennase
Questions and Comments are welcome! Feel free to do so...
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 NSE!