Hello Traders,
N50 reached to 10784.65 on May 02 and closed the Gap that occured at the opening bell the same Day. So it can be classified as an „Exhausting Gap“! This kind of Gap only occurs at the end of a larger advance (in this case) and indicate Exhausting Power. Closing the Gap is a first sign for this! In the following Tradinghours N50 declined to fresh new lows at 10690.05, which mark the .38 FibRT of the advance from 10536.45-10784.65!
The pattern for now is clear a „Three“ and implies a pullback within an a-b-c correction or it still develops into a „Five“ which need some more subdivision to the downside to become one. To scroll down into the 1 min chart, it is possible to count the decline to 10717 as a five-move-pattern, so it can be labeld as a „ZigZag“ or a fresh impulse down.
To follow the idea of an „ZigZag“ pattern it can be done, while a ZigZag often times shows equality in wave a and c. In this case it is done at 10702.95, the low was at 10689.8!
On the other hand the pullback from 10689.80 show some overlapping waves which indicate a corrective move and after it is done, a decline to fresh new lows is next to occur. A target zone for the idea of an impulse down is around ~ 10661.73 area, the 1.618 FibExt of an extending Wave 3. More bearish potencial exist!
So for tomorrows trading the level got set and it will be intersting to see how the marked will judge.
As always, be prepared for the unexpected!
Have a great time...
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!
Data by NSEIndia.com and moneycontrol.com!
1 min Chart:
N50 reached to 10784.65 on May 02 and closed the Gap that occured at the opening bell the same Day. So it can be classified as an „Exhausting Gap“! This kind of Gap only occurs at the end of a larger advance (in this case) and indicate Exhausting Power. Closing the Gap is a first sign for this! In the following Tradinghours N50 declined to fresh new lows at 10690.05, which mark the .38 FibRT of the advance from 10536.45-10784.65!
The pattern for now is clear a „Three“ and implies a pullback within an a-b-c correction or it still develops into a „Five“ which need some more subdivision to the downside to become one. To scroll down into the 1 min chart, it is possible to count the decline to 10717 as a five-move-pattern, so it can be labeld as a „ZigZag“ or a fresh impulse down.
To follow the idea of an „ZigZag“ pattern it can be done, while a ZigZag often times shows equality in wave a and c. In this case it is done at 10702.95, the low was at 10689.8!
On the other hand the pullback from 10689.80 show some overlapping waves which indicate a corrective move and after it is done, a decline to fresh new lows is next to occur. A target zone for the idea of an impulse down is around ~ 10661.73 area, the 1.618 FibExt of an extending Wave 3. More bearish potencial exist!
So for tomorrows trading the level got set and it will be intersting to see how the marked will judge.
As always, be prepared for the unexpected!
Have a great time...
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!
Data by NSEIndia.com and moneycontrol.com!
1 min Chart: