Hello Traders,
N50 dropped this Morning to a low @10417.80, meeting both, the green marked rectangle and the falling grey dotted trendline, connecting the Wave (b) high @10631.25 and the high of a possible at 10519.10! While it was touched multiple times, it becomes more important as before.
The decline that started at 10929.20 to 10417.80 retraced a bit more of a .5 Fibonacci. This is one of a common target for a Wave 2 correction, the most common is the .618! So a possible „Expanding-Flat“ pattern was done this Morning
A/D-Ratio was strong @2.13, suggesting the start of a new advance. Note the blue trendline, that marks the time sequence for a minimum timetarget in a Wave 2 correction. This was stretched to a bit more than the .618 FibTime. This two Fibolevels and the strong a/d-Ratio increase the odds that the correction is done or close to so, with one more up-down sequence! Because of a failed internet connection to the Moneycontral App, I have no data for traded Future Contracts at NIFTY50, but yesterdays Volume was very strong at ~135K. It was the strongest Volume during the last Days, suggesting that contracts switched from „weak into strong“ Hands.
If so, a first pricetarget is @ 10621, which is a Wave 4 level of lesser degree and a .382 FibRT of the decline from 10929.20! More bullish potencial exist up to 10734.61, the .618 FibT of the same distance.
The alternate interpretation is that the decline was the Wave (a) of a Flat within a Wave (B) and after it finished a fresh decline to new lows is next to occur.
For this view I need more pattern to judge for, while, at the other hand, some other possibilities exist.
Have a great weekend
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!
N50 dropped this Morning to a low @10417.80, meeting both, the green marked rectangle and the falling grey dotted trendline, connecting the Wave (b) high @10631.25 and the high of a possible at 10519.10! While it was touched multiple times, it becomes more important as before.
The decline that started at 10929.20 to 10417.80 retraced a bit more of a .5 Fibonacci. This is one of a common target for a Wave 2 correction, the most common is the .618! So a possible „Expanding-Flat“ pattern was done this Morning
A/D-Ratio was strong @2.13, suggesting the start of a new advance. Note the blue trendline, that marks the time sequence for a minimum timetarget in a Wave 2 correction. This was stretched to a bit more than the .618 FibTime. This two Fibolevels and the strong a/d-Ratio increase the odds that the correction is done or close to so, with one more up-down sequence! Because of a failed internet connection to the Moneycontral App, I have no data for traded Future Contracts at NIFTY50, but yesterdays Volume was very strong at ~135K. It was the strongest Volume during the last Days, suggesting that contracts switched from „weak into strong“ Hands.
If so, a first pricetarget is @ 10621, which is a Wave 4 level of lesser degree and a .382 FibRT of the decline from 10929.20! More bullish potencial exist up to 10734.61, the .618 FibT of the same distance.
The alternate interpretation is that the decline was the Wave (a) of a Flat within a Wave (B) and after it finished a fresh decline to new lows is next to occur.
For this view I need more pattern to judge for, while, at the other hand, some other possibilities exist.
Have a great weekend
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!