Hello Traders,
NIFTY50 closed at 21456 on Friday; another and a new ATH!
Volume looks pretty good and my target @ 21692 is the next possibility!
Monday's candle (12/11) was low volume and range bound. On Tuesday the market made a reversal candle, a bearish engulfing. However, this candle fails on Wednesday after showing a "long ledged doji" on Tuesday. As a result, two days of massive gap-up occurred (short squeeze?) and pushed N50 to these new highs.
To think "the sky is the limit", very few expect a consolidation here, or the end of an uptrend with a transition to a correction! But I would like to show you my idea if such a scenario will take place in the coming days.
If this move to 21456 was the high, or it is close at hand, the market will move sideways in a kind of "consolidation" (bullish flag, trend-channel...) and will take some days to establish this formation.
Once finished, trend will resume it's main direction to new ATH, one @ my predicted 21692! More bullish potential exists.
A wave 4 of a higher degree (submicro) will retrace, probably a 0.382 Fib retracement of wave (3). This would occur at 20492, exactly 1000 points below the ATH at 21492.
Why a 0.382 Fib retracement? Because this is the most reached corrective level within a wave 4 of any degree, after a wave 3 was done.
Well folks, we will see what happens next week.
With the Christmas holidays coming up, volume will mostly flatten out and activity will cool down.
My fellow traders, you are prepared as always for both sides of the markets; the bulls and the bears will get their chance! Sooner or later!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.
NIFTY50 closed at 21456 on Friday; another and a new ATH!
Volume looks pretty good and my target @ 21692 is the next possibility!
Monday's candle (12/11) was low volume and range bound. On Tuesday the market made a reversal candle, a bearish engulfing. However, this candle fails on Wednesday after showing a "long ledged doji" on Tuesday. As a result, two days of massive gap-up occurred (short squeeze?) and pushed N50 to these new highs.
To think "the sky is the limit", very few expect a consolidation here, or the end of an uptrend with a transition to a correction! But I would like to show you my idea if such a scenario will take place in the coming days.
If this move to 21456 was the high, or it is close at hand, the market will move sideways in a kind of "consolidation" (bullish flag, trend-channel...) and will take some days to establish this formation.
Once finished, trend will resume it's main direction to new ATH, one @ my predicted 21692! More bullish potential exists.
A wave 4 of a higher degree (submicro) will retrace, probably a 0.382 Fib retracement of wave (3). This would occur at 20492, exactly 1000 points below the ATH at 21492.
Why a 0.382 Fib retracement? Because this is the most reached corrective level within a wave 4 of any degree, after a wave 3 was done.
Well folks, we will see what happens next week.
With the Christmas holidays coming up, volume will mostly flatten out and activity will cool down.
My fellow traders, you are prepared as always for both sides of the markets; the bulls and the bears will get their chance! Sooner or later!
Have a great week.....
Ruebennase
Please ask or comment as needed.
Trading based on this analysis is at your own risk.