NIFTY50 declined to 11090.65 this morning, which was shy above the 0.618 Fibonacci of the advance from 10670.50-11693.80!
It did not break the series of lower highs, what will be the case @11399.90, the high of October 4! A break of this lower highs would be a first hint, that the correction is done.
A break of today's low (@ 11090.65) will be an onset of series of lower lows and lower highs instead, meaning the opposite; the correction could be going on!
As before, a break of 11400 area with a comfortable and a close on an hourly basis could be the first hint, that new highs are next to come.
On the other hand. If the correction creates just a first leg of an „expanding flat“ and a wave „a“ of "2" is done, a wave „b“ is next to develop. While a wave „b“ of an „expanding flat“ often extends to a 1.236 multiple of a wave „a“, this would be at 11836.89! So a wave „c“ after would be next!
Today's a/d-ratio was strong at 3.1 and could imply the start of a new wave of impulsive moves.
A gap to the upside at the next two trading sessions would manifest this view.
Have a great week...
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Trading this analyze is at your own risk!
thank you very much. Always my pleasure...