Hello Traders,
NIFTY 50 hasn't made any progress the latter week! It moved „sideways“ in a „consolidation mode“! I am not sure about the next move, so I try to show you my thoughts.
Using the 15 m chart, I have painted the numbers 1-2-3-4-5 to count the structure. As you notice, the count is not complete, and it is possible, that new lows will occur at Monday's trading day after a positive opening sequence?!
The alternate means, that the move down from the 15914.20 level was a corrective setup, counted as you see!
Using RSI indicator to become more clearness to chart, we see, that the wave 1, blue, low was at 44.59 for RSI.
Indicating it has ended shy below „bull territory“ (50 zone)!
The wave 2, blue high ended at 62 level, neutral.
And least, wave 3, blue ended in „oversold“ area at ~24.59.
The odds are given, that the move can be done, but the pullback in a possible wave 4, blue looks like not done to the upside. So a move to or around the 15726-15748 area is quite possible and should not surprise. After, if so to come, a decline to new lows below the wave 3 low are still in the cards!?
My recommendation for Monday? Sideline, as long as the structure becomes clearer!
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!
NIFTY 50 hasn't made any progress the latter week! It moved „sideways“ in a „consolidation mode“! I am not sure about the next move, so I try to show you my thoughts.
Using the 15 m chart, I have painted the numbers 1-2-3-4-5 to count the structure. As you notice, the count is not complete, and it is possible, that new lows will occur at Monday's trading day after a positive opening sequence?!
The alternate means, that the move down from the 15914.20 level was a corrective setup, counted as you see!
Using RSI indicator to become more clearness to chart, we see, that the wave 1, blue, low was at 44.59 for RSI.
Indicating it has ended shy below „bull territory“ (50 zone)!
The wave 2, blue high ended at 62 level, neutral.
And least, wave 3, blue ended in „oversold“ area at ~24.59.
The odds are given, that the move can be done, but the pullback in a possible wave 4, blue looks like not done to the upside. So a move to or around the 15726-15748 area is quite possible and should not surprise. After, if so to come, a decline to new lows below the wave 3 low are still in the cards!?
My recommendation for Monday? Sideline, as long as the structure becomes clearer!
Have a great weekend.....
Ruebennase
Feel free to ask or comment!
Trading this analysis is at your own risk!