Hello Traders,
back from a one week holiyday, lets check the NIFTY50!
Some interesting Fibo-Ratio have occured and technical conditions as well.
The new ATH on Aug 09 @ 11495.20 was accompied by a neutral a/d-Ratio shy above 1, meaning every new high was accompied by a weaker Ratio (internal structure of wave i-v )! This behavior indicate decreasing momentum as it often occurs at the end of an impulse. And the NSE A/D-Line is still declining since Jan 08. As I mentioned before, this line often topps befor the Index does.
By observing the purple colored move to new highs, you will notice that the last action look not like a „5-up“, it really look not done to the upside. So may one more up sequence is needed to complete and after that a decline in a corrective pattern is next to occur.
On the other hand, there is some interesting to check out.
By measuring the lengths of wave i (purple), the advance from 11234.95 took the 1.5 lengths within wave v! While a common target for a wave v (no matter which degree) is either the 0.618-1-1.618-Ratio, the odds are really high that one more little high is next. At 11508.60 the FibRatio of 2 is placed and indicate a „extended wave“ .
So a shy new high above the 10490.15 will satisfy this possibility, and after a correction is next to occur. A well placed target is around 11508.60-11519.80, the 1.618 Fib of wave i!
At the 2 hour chart you will also notice, that the RSI is still „declining“ since the high at 11328.10, a „wave 3 of a 3“ topp! This high was also accompied by a rising VIX, which is moving sideways since!!!
And at least, the TRIN (SMA10) is popping up to 1.91 on Aug 10 and indicate „overbought“ conditions.
So, the coming hours will be very interesting to see, how markets will act and with a „troublesome“time in the back (worldwide..) the odds for significant highs in many markets are for real!
Be prepared for the unexpected...
Have a great week...
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!
back from a one week holiyday, lets check the NIFTY50!
Some interesting Fibo-Ratio have occured and technical conditions as well.
The new ATH on Aug 09 @ 11495.20 was accompied by a neutral a/d-Ratio shy above 1, meaning every new high was accompied by a weaker Ratio (internal structure of wave i-v )! This behavior indicate decreasing momentum as it often occurs at the end of an impulse. And the NSE A/D-Line is still declining since Jan 08. As I mentioned before, this line often topps befor the Index does.
By observing the purple colored move to new highs, you will notice that the last action look not like a „5-up“, it really look not done to the upside. So may one more up sequence is needed to complete and after that a decline in a corrective pattern is next to occur.
On the other hand, there is some interesting to check out.
By measuring the lengths of wave i (purple), the advance from 11234.95 took the 1.5 lengths within wave v! While a common target for a wave v (no matter which degree) is either the 0.618-1-1.618-Ratio, the odds are really high that one more little high is next. At 11508.60 the FibRatio of 2 is placed and indicate a „extended wave“ .
So a shy new high above the 10490.15 will satisfy this possibility, and after a correction is next to occur. A well placed target is around 11508.60-11519.80, the 1.618 Fib of wave i!
At the 2 hour chart you will also notice, that the RSI is still „declining“ since the high at 11328.10, a „wave 3 of a 3“ topp! This high was also accompied by a rising VIX, which is moving sideways since!!!
And at least, the TRIN (SMA10) is popping up to 1.91 on Aug 10 and indicate „overbought“ conditions.
So, the coming hours will be very interesting to see, how markets will act and with a „troublesome“time in the back (worldwide..) the odds for significant highs in many markets are for real!
Be prepared for the unexpected...
Have a great week...
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!