Hello Traders,
since the high at 12018.65 on October 21 NIFTY50 is correcting in a „three-down“ which developed within a trend channel. It is not important if this move was an a-b-c or a w-x-y move. The consequence would be the same after the c or y-leg is done. A push to the wave b or x high at 11974 (red arrow)!
Using the Donchion channel to see support and resistance, you will observe, that N50 has exceeded the middle band of the channel (grey dotted line) and is advancing to the upper boundary of the trend channel first. A push above this boundary (at ~11900 area tomorrow) would open the door to the upper line of the DC-channel ( around 11960 area) and after to the high at 12022.50!
A decline below the middle band of the DC-channel (yellow line) will probably send a bearish signals again and N50 should be able to correct to the lower level at ~ 11710 area.
So we will watch NIFTY50`s behavior close and update if any news develops.
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
since the high at 12018.65 on October 21 NIFTY50 is correcting in a „three-down“ which developed within a trend channel. It is not important if this move was an a-b-c or a w-x-y move. The consequence would be the same after the c or y-leg is done. A push to the wave b or x high at 11974 (red arrow)!
Using the Donchion channel to see support and resistance, you will observe, that N50 has exceeded the middle band of the channel (grey dotted line) and is advancing to the upper boundary of the trend channel first. A push above this boundary (at ~11900 area tomorrow) would open the door to the upper line of the DC-channel ( around 11960 area) and after to the high at 12022.50!
A decline below the middle band of the DC-channel (yellow line) will probably send a bearish signals again and N50 should be able to correct to the lower level at ~ 11710 area.
So we will watch NIFTY50`s behavior close and update if any news develops.
Have a great week...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!