Hello Traders,
NIFTY50 gaped to the downside and set a low @ 16564.25. After, the index reverse to the upside, retracing to the 0.618 Fibo of the decline.
The following scenarios are thinkable.
1. Today's low was a wave (A) of a ZigZag-pattern, and the pullback finished waves (B) @ 16684. The next move should be to the downside to complete the ZigZag-pattern @ or around 16496 (c=a) or it declines some points lower to 16449-16425-16382! At one of these levels, waves(C) should be complete!
2. Another possibility is, that the move from 16684 to today's close @ 16610, was a waves b (one lower degree) of waves (B), and N50 will rise at tomorrow's session to 16752. In this case, the ZigZag-pattern should be eliminated and a „flat-pattern“ is in focus. In this case, the pattern should end waves (C) at today's low!
3. A break of the 16752 on an hourly closing price, and more important, on a daily close, tells us, that the correction is done, and N50 is on the way to 16793. More bullish potential exist.
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 gaped to the downside and set a low @ 16564.25. After, the index reverse to the upside, retracing to the 0.618 Fibo of the decline.
The following scenarios are thinkable.
1. Today's low was a wave (A) of a ZigZag-pattern, and the pullback finished waves (B) @ 16684. The next move should be to the downside to complete the ZigZag-pattern @ or around 16496 (c=a) or it declines some points lower to 16449-16425-16382! At one of these levels, waves(C) should be complete!
2. Another possibility is, that the move from 16684 to today's close @ 16610, was a waves b (one lower degree) of waves (B), and N50 will rise at tomorrow's session to 16752. In this case, the ZigZag-pattern should be eliminated and a „flat-pattern“ is in focus. In this case, the pattern should end waves (C) at today's low!
3. A break of the 16752 on an hourly closing price, and more important, on a daily close, tells us, that the correction is done, and N50 is on the way to 16793. More bullish potential exist.
Have a great week.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!