Hello Traders,
N50 set a new multi week high at 10719.8 at Fridays trading session. It retraced .618 of the decline from 11171.55 -9951.90! The advance within the last hours is clearly a 5-move pattern, which make it the end of the advance that started at March 23 or it is wave 1 (miniscule) of (5) of ((5))! Open targets at this case are at ~10745-10876 zone! At the first target wave (5) will have the .618 lenght of wave ((1)), at the second it will be equal wave ((1))! For the bearish case NIFTY50 may find support at ~ 10680-10641 zone at first.
A/d-Ratio was strong @ 2.57 at Friday, supporting the view that this advance is still to climb higher.
Nifty TRIN is still declining (below 1), indicating the same!
On a longer time frame (weekly) we see an advance that runs may into it`s six week, making this a more bullish and impulsive one that a bearmarked rally to my view.
At the Daily chart I have placed some arrows and text notes to show you, how the a/d-Ratio can help to judge for one or the other direction being doubtful by the own view!
Strong Ratio`s, well above 1.2-1.3 often indicates a broader market advance, which is the basis (following the DOW Theory) that a new advance has start. On the other hand it must be judge with a view in terms of price and time the past decline was running! Meaning not one day makes a new advance, but if „Big Money“ is starting to buy, the odds do increase for this case and this often is supported by this Ratio! For this view it is always helpful to watch the other Indexes at India like the NIFTY200/500; NB and Sensex for example.
Observing the Option chain for N50, we see a huge position placed at 11K with a No of contracts at 5,112,450 in calls!! The next high No for Puts are placed at 10600-10500 zone in summ the No of Contracts to Calls, may inidicating a sideways range in trading for the next 2-3 weeeks??
We will see how it work out this time!
As always, by prepared for the unexpected and remember...You`re always just one click away from the wrong decission!!
Have a great week.......
ruebennase
Daily chart::
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 set a new multi week high at 10719.8 at Fridays trading session. It retraced .618 of the decline from 11171.55 -9951.90! The advance within the last hours is clearly a 5-move pattern, which make it the end of the advance that started at March 23 or it is wave 1 (miniscule) of (5) of ((5))! Open targets at this case are at ~10745-10876 zone! At the first target wave (5) will have the .618 lenght of wave ((1)), at the second it will be equal wave ((1))! For the bearish case NIFTY50 may find support at ~ 10680-10641 zone at first.
A/d-Ratio was strong @ 2.57 at Friday, supporting the view that this advance is still to climb higher.
Nifty TRIN is still declining (below 1), indicating the same!
On a longer time frame (weekly) we see an advance that runs may into it`s six week, making this a more bullish and impulsive one that a bearmarked rally to my view.
At the Daily chart I have placed some arrows and text notes to show you, how the a/d-Ratio can help to judge for one or the other direction being doubtful by the own view!
Strong Ratio`s, well above 1.2-1.3 often indicates a broader market advance, which is the basis (following the DOW Theory) that a new advance has start. On the other hand it must be judge with a view in terms of price and time the past decline was running! Meaning not one day makes a new advance, but if „Big Money“ is starting to buy, the odds do increase for this case and this often is supported by this Ratio! For this view it is always helpful to watch the other Indexes at India like the NIFTY200/500; NB and Sensex for example.
Observing the Option chain for N50, we see a huge position placed at 11K with a No of contracts at 5,112,450 in calls!! The next high No for Puts are placed at 10600-10500 zone in summ the No of Contracts to Calls, may inidicating a sideways range in trading for the next 2-3 weeeks??
We will see how it work out this time!
As always, by prepared for the unexpected and remember...You`re always just one click away from the wrong decission!!
Have a great week.......
ruebennase
Daily chart::
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!