As anticipated Nifty made a high around 10,490 today but failed to sustain higher levels and subsequently closed at 10,451. The fall from 10,490 has a 5-3-5 wave structure . There are two possible scenarios under the given circumstances:
1) Nifty has made a short term top at 10,490 and is forming the first impulsive wave lower of which waves 1-3 is done . In this scenario I expect Nifty to move lower without violating 10,463.
2) Nifty is forming an ED of which waves 1-4 is already done. If this is playing out then Nifty makes one more high above 10,490 without violating the red trend lines and then move lower.
Either way Nifty has limited upside potential as per the current chart structure but to confirm that a short term top is in place we still need Nifty to close below 10,400 .
Good Luck Traders !!!
1) Nifty has made a short term top at 10,490 and is forming the first impulsive wave lower of which waves 1-3 is done . In this scenario I expect Nifty to move lower without violating 10,463.
2) Nifty is forming an ED of which waves 1-4 is already done. If this is playing out then Nifty makes one more high above 10,490 without violating the red trend lines and then move lower.
Either way Nifty has limited upside potential as per the current chart structure but to confirm that a short term top is in place we still need Nifty to close below 10,400 .
Good Luck Traders !!!