Hello Traders,
On November 19th I wrote the following words: "If the N50 extends above this area, the door could be open to the ATH @ 20222 area in the coming days, probably two weeks!" That is exactly what happened!
The NIFTY50 extended its gains to 20291.55 on Friday. The new extended price target is @ 20665 area. This is just the target for a wave 3, so more bullish potential exists!
One of the most important indicators is the volume.
On a weekly time frame, you can see that last week's volume was the highest since October 30th! So, once a trend is established, it will extend along its main direction. So, my guess is that the price will extend to higher levels in the weeks ahead.
One will ask, "How did he determine the price target?"
Well, my count has two main options. One is a w (done)-x (done?) and a wave y down to come!
Another is that at the black w the correction was done and, the following move was a double 1-2 with a w-x-y ending at 19414! So, if it was to come, the price target after a completed w-x-y is always a 2.618 Fib extension on an impulse move!
The coming days will show what's going on and the market will give the answer!
Have a nice weekend.....
Red Nose
Please ask or comment as needed.
Trading based on this analysis is at your own risk.
On November 19th I wrote the following words: "If the N50 extends above this area, the door could be open to the ATH @ 20222 area in the coming days, probably two weeks!" That is exactly what happened!
The NIFTY50 extended its gains to 20291.55 on Friday. The new extended price target is @ 20665 area. This is just the target for a wave 3, so more bullish potential exists!
One of the most important indicators is the volume.
On a weekly time frame, you can see that last week's volume was the highest since October 30th! So, once a trend is established, it will extend along its main direction. So, my guess is that the price will extend to higher levels in the weeks ahead.
One will ask, "How did he determine the price target?"
Well, my count has two main options. One is a w (done)-x (done?) and a wave y down to come!
Another is that at the black w the correction was done and, the following move was a double 1-2 with a w-x-y ending at 19414! So, if it was to come, the price target after a completed w-x-y is always a 2.618 Fib extension on an impulse move!
The coming days will show what's going on and the market will give the answer!
Have a nice weekend.....
Red Nose
Please ask or comment as needed.
Trading based on this analysis is at your own risk.