Hello Traders,
indeed, as of my last analyze NIFTY50 has caught one more high to 12293.90 and has started a decline thereafter.
I have drawn a parallel trend channel to show how prices have moved since. At today`s session, they broke the lower boundary of the channel and intensified the strength of the decline to a low @ 12120.10. This is a possible wave „3“ low @ lower degree and a ~ 0.7 Fibonacci level of the advance from wave „4“! Note, that the decline stops at or near a wave „2“ level of lesser degree, what is often a target after a wave „5“ was the longest wave in an impulsive move. In other words, wave „5“ expand to new highs and was longer than wave „3“!
So, it could be all of the declines but to me, it looks not complete to the downside.
Today`s a/d-ratio closed at 0.39 and TRIN closed at 2.468 for the broader NIFTY! This implies a short term recover.
Thus, it could be possible that N50 will process the last sell orders and reversal for a wave „4“ countertrend at the coming session. A common price target for this idea ranges from 12172-12180.50, were I have placed a wave „4“ level and it is, more importantly, the 0.382 Fibonacci of the decline in wave „3“! One more target is at the lower boundary of the channel that crosses tomorrow @ or near the 12200 area.
So, it will be interesting how N50 will develop and I will update my idea in the coming hours.
Have a great day...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
indeed, as of my last analyze NIFTY50 has caught one more high to 12293.90 and has started a decline thereafter.
I have drawn a parallel trend channel to show how prices have moved since. At today`s session, they broke the lower boundary of the channel and intensified the strength of the decline to a low @ 12120.10. This is a possible wave „3“ low @ lower degree and a ~ 0.7 Fibonacci level of the advance from wave „4“! Note, that the decline stops at or near a wave „2“ level of lesser degree, what is often a target after a wave „5“ was the longest wave in an impulsive move. In other words, wave „5“ expand to new highs and was longer than wave „3“!
So, it could be all of the declines but to me, it looks not complete to the downside.
Today`s a/d-ratio closed at 0.39 and TRIN closed at 2.468 for the broader NIFTY! This implies a short term recover.
Thus, it could be possible that N50 will process the last sell orders and reversal for a wave „4“ countertrend at the coming session. A common price target for this idea ranges from 12172-12180.50, were I have placed a wave „4“ level and it is, more importantly, the 0.382 Fibonacci of the decline in wave „3“! One more target is at the lower boundary of the channel that crosses tomorrow @ or near the 12200 area.
So, it will be interesting how N50 will develop and I will update my idea in the coming hours.
Have a great day...
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!