Hello Traders,
NIFTY50 moved sideways since my latter analysis.
It dropped to 18060 yesterday, Future was @ 18085 low today, and reversed to the upside.
The "decline" was a "three-down", but to be honest, the second leg down looks too short in time and price to be all of the corrective setback!?
If it was all of the setback, and N50 is likely to reverse, the next stop should be a new ATH! This scenario could bring N50 above 18887.60, that was made @ December 01, 2022. It could complete an impulsive wave, lettered as i-ii-iii-iv-v (circle)! After this, a decline within a wave 2 or b is next and should retrace a good portion of the total advance from 16828.
Another argument is an impulsive wave that is extending and N50 will set new ATH`s too.
The bearish view, let me argue, that the decline from 18458 to 18060 was a wave w (a-b-c in details, one lower degree) and the countertrend move was part or all of wave x. In this case, the next action would bring N50 to new lows below 18060. A price range for this scenario ranges from 17900-17550 area. This move was a wave y, that could be lettered as i-ii-iii-iv-v of c of y!
Recall!
A w-x-y wave is lettered in detail as a (a-b-c) w--> wave x (any type of corrective wave) including an impulse--> wave y (a-b- of c of y! Got it?
If traders have hedged their positions around 18400, it`s time to sell and set a "stop-sell" order @ 18060. This is one argument to hedge profits after the long advance, coming from 16828.
Anyway!
The next days could be very interesting.
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 moved sideways since my latter analysis.
It dropped to 18060 yesterday, Future was @ 18085 low today, and reversed to the upside.
The "decline" was a "three-down", but to be honest, the second leg down looks too short in time and price to be all of the corrective setback!?
If it was all of the setback, and N50 is likely to reverse, the next stop should be a new ATH! This scenario could bring N50 above 18887.60, that was made @ December 01, 2022. It could complete an impulsive wave, lettered as i-ii-iii-iv-v (circle)! After this, a decline within a wave 2 or b is next and should retrace a good portion of the total advance from 16828.
Another argument is an impulsive wave that is extending and N50 will set new ATH`s too.
The bearish view, let me argue, that the decline from 18458 to 18060 was a wave w (a-b-c in details, one lower degree) and the countertrend move was part or all of wave x. In this case, the next action would bring N50 to new lows below 18060. A price range for this scenario ranges from 17900-17550 area. This move was a wave y, that could be lettered as i-ii-iii-iv-v of c of y!
Recall!
A w-x-y wave is lettered in detail as a (a-b-c) w--> wave x (any type of corrective wave) including an impulse--> wave y (a-b- of c of y! Got it?
If traders have hedged their positions around 18400, it`s time to sell and set a "stop-sell" order @ 18060. This is one argument to hedge profits after the long advance, coming from 16828.
Anyway!
The next days could be very interesting.
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!