Hello Traders,
the decline that started at Jan 29th @11171.35 is a clear „five down“ to 10276.30 on Feb 06! The rise since than is either a wave A of flat pattern, a wave 1 or it is a wave A of an developing Triangle. The idea of the triangle will be valid if the pattern decline below 10398.20!
If this occur at next hours a time of sideways move will be next and a sharp breakout to the upside will occur. The triangles target is to measure by the length of the price distance from wave (A) – (B) and measure the distance at breakout from the pattern to the upside in this case, which will be the end of wave (E). The problem to identify the target of the triangle is that exist different levels to measure. If the pattern becomes a clear structure, you will read targets at this lines.
I become to this conclution because of the indicators like the a/d-Ratio which was "normal" at the past days, not really a spike that would indicate the start of a new advance. Also No. of contracts, tradet by Future traders was quite normal and no „abnormal“ level was reached. The RSI is also trading below the level of 50, which indicate a technically weakening pullback, who didn't deserve the word rally!
B-Wave are mostly not technically strong, they show weakening indicators as the a/d-Ratio or the RSI and others. Keep that in mind.
Really often a wave 4 of lesser degree is a common target for a countertrend that I expecting in this case. At the other hand more often than not, price come back and „kiss“ the undergoing side of a trendline the Index/Stock had broke, in this case to the downisde. An also common price target as you know is the .618 RT of the complete decline which is at 10829.56 area, where just tics away the broken trendline from a channel has taken place and is crossing ~10888 area by tomorrows trading. another one is the zone at 10723, a .5 RT typically for a wave B end.
So, we have many targets to the upside. If price breakdown and is trading at levels below 10276.30, the odds will increase, that a longer lasting decline has started.
Be prepared for the unexpected!
Have a great time...
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!
the decline that started at Jan 29th @11171.35 is a clear „five down“ to 10276.30 on Feb 06! The rise since than is either a wave A of flat pattern, a wave 1 or it is a wave A of an developing Triangle. The idea of the triangle will be valid if the pattern decline below 10398.20!
If this occur at next hours a time of sideways move will be next and a sharp breakout to the upside will occur. The triangles target is to measure by the length of the price distance from wave (A) – (B) and measure the distance at breakout from the pattern to the upside in this case, which will be the end of wave (E). The problem to identify the target of the triangle is that exist different levels to measure. If the pattern becomes a clear structure, you will read targets at this lines.
I become to this conclution because of the indicators like the a/d-Ratio which was "normal" at the past days, not really a spike that would indicate the start of a new advance. Also No. of contracts, tradet by Future traders was quite normal and no „abnormal“ level was reached. The RSI is also trading below the level of 50, which indicate a technically weakening pullback, who didn't deserve the word rally!
B-Wave are mostly not technically strong, they show weakening indicators as the a/d-Ratio or the RSI and others. Keep that in mind.
Really often a wave 4 of lesser degree is a common target for a countertrend that I expecting in this case. At the other hand more often than not, price come back and „kiss“ the undergoing side of a trendline the Index/Stock had broke, in this case to the downisde. An also common price target as you know is the .618 RT of the complete decline which is at 10829.56 area, where just tics away the broken trendline from a channel has taken place and is crossing ~10888 area by tomorrows trading. another one is the zone at 10723, a .5 RT typically for a wave B end.
So, we have many targets to the upside. If price breakdown and is trading at levels below 10276.30, the odds will increase, that a longer lasting decline has started.
Be prepared for the unexpected!
Have a great time...
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!