Hello Traders,
Nifty50 gaped up today, as I expected for today`s session, closing the day at 10265.65 with a strong a/d-Ratio 3.6! VIX is still „collapsing“, RSI is trading above it`s bullish zone at 50. This weeks Candlestick look like a hammer, but it did not occur at bottom, but we handle it as one. By observing daily candlesticks, you can see that a second strong day has occured, signaling a possible trendchange to the upside and creating two of three candlisticks, forming a „three-white-soldier“ Formation.
Remember. Gaps did not occur randomly, the occur at speciall places at chart. Todays gap is may a „breakaway gap“! As long as NIFTY50 is trading above 9687 the trend is up on a weekly basis.
Today I label the corrective move as a wave (ii) and a new push to fresh ATH is to expect. On a daily basis the MoB to this forecast is the level at 10033.35 from Dec.06, the possible wave (ii) low! On a shorter timeframe it is also possible to label the move from Dec. 06 low as a impulsive move which is near to finish and a correction on a lesser timeframe is just around the corner (check below).
On the weekly chart take notice, that the purple trendchannel was breached by the past two candles. If a return into that channel occurs, it will be a bullish sign for the next weeks, to my view. A „touch back“ and a „say-good-by“ to this channel will mean the opposite statement and a correctiion on a higher degree.
Todays session touched the 0.618 FibRT of the decline 10409 – 10033 and may finished a impulsiv move or is close to do so. That means a setback in a wave ii is possible to the zone @ 10232, a wave 4 of lesser degree (but I think it would be to shallow) and at 10152.
So very interesting sessions are still ahead.
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!
Nifty50 gaped up today, as I expected for today`s session, closing the day at 10265.65 with a strong a/d-Ratio 3.6! VIX is still „collapsing“, RSI is trading above it`s bullish zone at 50. This weeks Candlestick look like a hammer, but it did not occur at bottom, but we handle it as one. By observing daily candlesticks, you can see that a second strong day has occured, signaling a possible trendchange to the upside and creating two of three candlisticks, forming a „three-white-soldier“ Formation.
Remember. Gaps did not occur randomly, the occur at speciall places at chart. Todays gap is may a „breakaway gap“! As long as NIFTY50 is trading above 9687 the trend is up on a weekly basis.
Today I label the corrective move as a wave (ii) and a new push to fresh ATH is to expect. On a daily basis the MoB to this forecast is the level at 10033.35 from Dec.06, the possible wave (ii) low! On a shorter timeframe it is also possible to label the move from Dec. 06 low as a impulsive move which is near to finish and a correction on a lesser timeframe is just around the corner (check below).
On the weekly chart take notice, that the purple trendchannel was breached by the past two candles. If a return into that channel occurs, it will be a bullish sign for the next weeks, to my view. A „touch back“ and a „say-good-by“ to this channel will mean the opposite statement and a correctiion on a higher degree.
Todays session touched the 0.618 FibRT of the decline 10409 – 10033 and may finished a impulsiv move or is close to do so. That means a setback in a wave ii is possible to the zone @ 10232, a wave 4 of lesser degree (but I think it would be to shallow) and at 10152.
So very interesting sessions are still ahead.
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!