Hello Traders,
NIFTY50 is ranging between 10004 and 10710.15. This behavior shows a clear „sideways-move“ and may indicate new fresh lows, because the first leg of the decline is possible to count as a „five-down“, so a second leg will be next to complete the structure.
To observe at chart is that the countertrend just retraced shy above the 0.382 Fibonnaci to 10695.15! This is most common target for a wave „a“ within a ZigZag-pattern. If so price have to bounce early next week to start wave „c“ of the pattern. Here to a common target is when wave „c“ is equal to „a“. This happens at 8939.50. Another target is around the 9610 area, and it is the 0.618 Fibonacci. The second most price target for the pattern.
One alternate count implies a rally to the 0.618 Fibonacci of the decline @ 11089.33. If this range will be achieved and price reversal sharply, it would imply a wave 2 high and the result would be the same as of the first pattern. A second leg down, but here, with much more potenciall for the bears and well below the 8939 area!
Just a break above the 0.786 Fibonacci at 11384.37 will bring the impulsive idea to forefront and will raise the odds that a new wave up is underway.
So, lets wait what will be next.
Have a great weekend....
Regards
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 is ranging between 10004 and 10710.15. This behavior shows a clear „sideways-move“ and may indicate new fresh lows, because the first leg of the decline is possible to count as a „five-down“, so a second leg will be next to complete the structure.
To observe at chart is that the countertrend just retraced shy above the 0.382 Fibonnaci to 10695.15! This is most common target for a wave „a“ within a ZigZag-pattern. If so price have to bounce early next week to start wave „c“ of the pattern. Here to a common target is when wave „c“ is equal to „a“. This happens at 8939.50. Another target is around the 9610 area, and it is the 0.618 Fibonacci. The second most price target for the pattern.
One alternate count implies a rally to the 0.618 Fibonacci of the decline @ 11089.33. If this range will be achieved and price reversal sharply, it would imply a wave 2 high and the result would be the same as of the first pattern. A second leg down, but here, with much more potenciall for the bears and well below the 8939 area!
Just a break above the 0.786 Fibonacci at 11384.37 will bring the impulsive idea to forefront and will raise the odds that a new wave up is underway.
So, lets wait what will be next.
Have a great weekend....
Regards
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!