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Hello Traders,
NIFTY50 has been advancing higher, fulfilled the forecast as of my last analysis!
Counting from the low on July 14 @ 10565, the advance does not look complete. Several options exist, and here are two of them.
The first is, that N50 is progressing within a triangle-pattern, what needs one more down sequence to complete, and after a push to new high`s is next to occur. As you know, the „thrust“of a triangle is always the final move, once the pattern is complete, and so N50 has one higher high to exceed. We will discuss the targets for this move depending on if the move comes into play! A break of the 11090 levels would rescind the triangle forecast.
Another valid interpretation is that N50 has complete „flat-pattern“ @ 11090, which represent the possible wave ((C)) of the triangle pattern , and is moving towards the wave „((B))“ high @ 11239.80! If so to come, the index needs a high above the 11239.80 level as a minimum expectation to complete wave „v“, what also would complete the countertrend move from the March 23 low @ 7511.10!
Friday`s a/d-ratio was weak @ 0.16 and TRIN was shy above 1 level (1.078). The interpretation of both could be, that a move to the upside is next to occur. Normally these low readings of a/d-ratio occur at the end of a corrective pattern. But this is not always the case.
Note, that the A/D-line for NSE is diverging to the price for N50. While N50 is moving higher, the line is „declining, i. e. Shows weakening behavior. Normally the line should move in unison with the index or underlying asset.
We will discuss the developing pattern in the coming days and judge what will be next for Indian markets.
Have a great weekend...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY50 has been advancing higher, fulfilled the forecast as of my last analysis!
Counting from the low on July 14 @ 10565, the advance does not look complete. Several options exist, and here are two of them.
The first is, that N50 is progressing within a triangle-pattern, what needs one more down sequence to complete, and after a push to new high`s is next to occur. As you know, the „thrust“of a triangle is always the final move, once the pattern is complete, and so N50 has one higher high to exceed. We will discuss the targets for this move depending on if the move comes into play! A break of the 11090 levels would rescind the triangle forecast.
Another valid interpretation is that N50 has complete „flat-pattern“ @ 11090, which represent the possible wave ((C)) of the triangle pattern , and is moving towards the wave „((B))“ high @ 11239.80! If so to come, the index needs a high above the 11239.80 level as a minimum expectation to complete wave „v“, what also would complete the countertrend move from the March 23 low @ 7511.10!
Friday`s a/d-ratio was weak @ 0.16 and TRIN was shy above 1 level (1.078). The interpretation of both could be, that a move to the upside is next to occur. Normally these low readings of a/d-ratio occur at the end of a corrective pattern. But this is not always the case.
Note, that the A/D-line for NSE is diverging to the price for N50. While N50 is moving higher, the line is „declining, i. e. Shows weakening behavior. Normally the line should move in unison with the index or underlying asset.
We will discuss the developing pattern in the coming days and judge what will be next for Indian markets.
Have a great weekend...
ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
Comments
Looks like iv is completed around 11089, completed v (= 1) around 11341 and abc after that completed at 11086 (around previous iv)?
Should we now expect the down move to continue as part of correction (V) towards 10565.30 (previous iv in blue)?
Curiously looking forward for your next analysis to check if my understanding correct. Thanks for the learning opportunity.