Hello Traders,
NIFTY50 topped on August 31 @ 11794.25 and closed the day lower with a loss of 260 points (intraday basis) It left a „bearish-engulfing“ at chart and the three following trading days, the marked could just retrace shy above the 0.5 Fibonacci of the decline. Today N50 gaped to the downside and made new lows below the August 31 low. This is a bearish sign!
Today`s a/d-ratio closed at 0.3, with 1153 that were sold and 362 shares were bought! TRIN closed at „panic-levels“ (@2.35), indicating more trouble to come.
As long as the August 31 high @ 11794.25 is valid, a wave 5 of (Y) of ((2)) is done and the next significant move should occur to the downside!
At the 30 min chart on the left-hand corner, you can observe the short-term structure for N50!
It declined from 11794.25 to 11325.85 in five waves and countertrends in a „three-up“ to 11584.95, indicating that the next move should occur to the downside. That`s what happened today, and the break of the August 31 low, is indicating that a wave 3 has begun!
Another possibility is that today`s decline is not done and it is part of a wave 5 of C which should decline to ~ 11295 level, were wave „c“ is a Fibonacci of 0.618 of wave „a“! This is a rare but still possible opportunity that I rate with a lower chance to come.
Any move above the 11583.96 area on a daily closing basis implies that something other is developing!
Have a great weekend...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 topped on August 31 @ 11794.25 and closed the day lower with a loss of 260 points (intraday basis) It left a „bearish-engulfing“ at chart and the three following trading days, the marked could just retrace shy above the 0.5 Fibonacci of the decline. Today N50 gaped to the downside and made new lows below the August 31 low. This is a bearish sign!
Today`s a/d-ratio closed at 0.3, with 1153 that were sold and 362 shares were bought! TRIN closed at „panic-levels“ (@2.35), indicating more trouble to come.
As long as the August 31 high @ 11794.25 is valid, a wave 5 of (Y) of ((2)) is done and the next significant move should occur to the downside!
At the 30 min chart on the left-hand corner, you can observe the short-term structure for N50!
It declined from 11794.25 to 11325.85 in five waves and countertrends in a „three-up“ to 11584.95, indicating that the next move should occur to the downside. That`s what happened today, and the break of the August 31 low, is indicating that a wave 3 has begun!
Another possibility is that today`s decline is not done and it is part of a wave 5 of C which should decline to ~ 11295 level, were wave „c“ is a Fibonacci of 0.618 of wave „a“! This is a rare but still possible opportunity that I rate with a lower chance to come.
Any move above the 11583.96 area on a daily closing basis implies that something other is developing!
Have a great weekend...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!