Hello Traders,
once again a negative performance for N50 this week. After opening an Oct. 15 @10524 and a strong following day on Oct 16 with a well a/d-Ratio @ 1.63, N50 opened the next day with a gap-up and reversed sharply for the rest of the session into negative territory, closing the day with a strong "bearish-Engulfing" pattern which indicate, from a classic chart analyze, a reversal to the downside. A first hint for this view is the "gap-down" that occurs the very next day of trading.
As long as the bearish-engulfing pattern is in place (@10710.5-10688.70) which includes the open and high price, the short-term view is focused to the downside. As before, an open target is around 9958, which is the wave 4 of one lesser degree, as you know a common target within a corrective move down.
While multiple options short- and long-term exist, I like to show you two of them.
First is, that at 11760.20 N50 has completed a multi- month running bull market which is now on the way to correct down in the next weeks ahead. This first move down, is possible to count as a "zigzag" or per alternate a wave 1 down. This move is complete or close to do so. A pullback within this pattern is just a countertrend within a wave B of a zigzag, which will retraced .382-.0618 of the decline. After this a decline to fresh new lows is next with targets well below 10K! Shortterm the targets are placed around the 9958-9875. More bearish potenciall exist!
The second option per the alternate labels at chart is, that the high at 11760.20 is a wave (5), Intermediate degree, and the running correction is on a higher degree with targets well below the 998x zone. In this case, we have to look for targets at the 6825 zone (this is not a typo :-)) which is the area of a wave 4 zone, set at Feb.2016! But this scenario is just one possibility I`m monitoring on a weekly basis, but still one of the options to play with!
If you are likely to look back to the charts I have published for N50, N200 and NIFTY IT, all these indexes are runnig in unison to the downside. This behavior shows, to my view, that a broader based correction has occured to India Markets and a multi month top took place for this. Just a push on a broad base for INDIA stocks to new highs will eliminate this idea and make it to the one with lower probability.
Shortterm, again, the decline is done or close to do so, with the targets at 9958-9875.
After that markets are likely to run up within a wave "b" of the zigzag-pattern. This is my favorite count as long 10707 is in place (the wave (iv) at the current move.
Have a great week...
ruebennase
Feel free to ask or comment.
Traing this analyze is at your own risk!
Weekly charts for NIFTY...
once again a negative performance for N50 this week. After opening an Oct. 15 @10524 and a strong following day on Oct 16 with a well a/d-Ratio @ 1.63, N50 opened the next day with a gap-up and reversed sharply for the rest of the session into negative territory, closing the day with a strong "bearish-Engulfing" pattern which indicate, from a classic chart analyze, a reversal to the downside. A first hint for this view is the "gap-down" that occurs the very next day of trading.
As long as the bearish-engulfing pattern is in place (@10710.5-10688.70) which includes the open and high price, the short-term view is focused to the downside. As before, an open target is around 9958, which is the wave 4 of one lesser degree, as you know a common target within a corrective move down.
While multiple options short- and long-term exist, I like to show you two of them.
First is, that at 11760.20 N50 has completed a multi- month running bull market which is now on the way to correct down in the next weeks ahead. This first move down, is possible to count as a "zigzag" or per alternate a wave 1 down. This move is complete or close to do so. A pullback within this pattern is just a countertrend within a wave B of a zigzag, which will retraced .382-.0618 of the decline. After this a decline to fresh new lows is next with targets well below 10K! Shortterm the targets are placed around the 9958-9875. More bearish potenciall exist!
The second option per the alternate labels at chart is, that the high at 11760.20 is a wave (5), Intermediate degree, and the running correction is on a higher degree with targets well below the 998x zone. In this case, we have to look for targets at the 6825 zone (this is not a typo :-)) which is the area of a wave 4 zone, set at Feb.2016! But this scenario is just one possibility I`m monitoring on a weekly basis, but still one of the options to play with!
If you are likely to look back to the charts I have published for N50, N200 and NIFTY IT, all these indexes are runnig in unison to the downside. This behavior shows, to my view, that a broader based correction has occured to India Markets and a multi month top took place for this. Just a push on a broad base for INDIA stocks to new highs will eliminate this idea and make it to the one with lower probability.
Shortterm, again, the decline is done or close to do so, with the targets at 9958-9875.
After that markets are likely to run up within a wave "b" of the zigzag-pattern. This is my favorite count as long 10707 is in place (the wave (iv) at the current move.
Have a great week...
ruebennase
Feel free to ask or comment.
Traing this analyze is at your own risk!
Weekly charts for NIFTY...