Hello Traders,
one of the headline that morning:"..Markets React to North Korea's Latest Missile Launch!"
This and other were to read at the news and kicked the DOW and all other markets to fresh new lows, like the NIKKEI made a fresh -4-month low- and the German DAX dropped below 12k! Analyst always say that was the reaction from markets to the missile test by the North Korean Leader and Government!
In Elliott terms it was to forecast at chart that something is still around the corner, and it does not make a difference if u expect one more high or the market will break down immediatly.
So today, in my view, we have seen a fresh new 5-move to the downside, wich made its low at 9873.85 after a massiv gap down to 9887.35. The days close was set at 9796.05. The daily chart leave a classic reversal pattern at chart, creating an "Evening Star". The NIFTY200 also shows weakness which classicly support the lower targets for India markets short term!
The 30 min chart shows a clear five wave structure down which implies after a rebound to around 9846.90 - 9871.25 a new low is still ahead. RSI (30 min chart) is still below 30 and support that view! Maybe one lower low is ahead, at latest after that a pullback is still to come. As long as NIFTY is trading below 9925.60 the odds are to favor that a fresh new impulsiv move to the downside is one the way. In my view at minimum to 9685.55. More bearish potential exist!
Alternate count is that this move today is just a wave "a" of "2"which after one more up-down sequence will break out to new fresh highs above 10137!
Have a great evening
rubennase
Questions and Comments are welcome! Feel free to do so...
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSE!
one of the headline that morning:"..Markets React to North Korea's Latest Missile Launch!"
This and other were to read at the news and kicked the DOW and all other markets to fresh new lows, like the NIKKEI made a fresh -4-month low- and the German DAX dropped below 12k! Analyst always say that was the reaction from markets to the missile test by the North Korean Leader and Government!
In Elliott terms it was to forecast at chart that something is still around the corner, and it does not make a difference if u expect one more high or the market will break down immediatly.
So today, in my view, we have seen a fresh new 5-move to the downside, wich made its low at 9873.85 after a massiv gap down to 9887.35. The days close was set at 9796.05. The daily chart leave a classic reversal pattern at chart, creating an "Evening Star". The NIFTY200 also shows weakness which classicly support the lower targets for India markets short term!
The 30 min chart shows a clear five wave structure down which implies after a rebound to around 9846.90 - 9871.25 a new low is still ahead. RSI (30 min chart) is still below 30 and support that view! Maybe one lower low is ahead, at latest after that a pullback is still to come. As long as NIFTY is trading below 9925.60 the odds are to favor that a fresh new impulsiv move to the downside is one the way. In my view at minimum to 9685.55. More bearish potential exist!
Alternate count is that this move today is just a wave "a" of "2"which after one more up-down sequence will break out to new fresh highs above 10137!
Have a great evening
rubennase
Questions and Comments are welcome! Feel free to do so...
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSE!