Hello Traders,
on February 7, N50 shows a „bearish-engulfing“ and I mentioned 3-5 days of declining price ahead.
In fact, N50 declined but just for the following session and gaped to the upside the very next day, creating a „Doji“ on a daily basis. Today the index gaped once again and make a new high at 12201 and negate the bearish pattern.
At the hourly chart, you will observe, that price is trending higher to a zone of resistance at 12262 (green dotted line) and above that level, the door is open to 12290 (blue line)! In this case, N50 has retraced a 0.786 Fibonacci of the past larger decline and it should reverse to the downside for the bearish case.
That means on the other hand, that the rise above the level of 12253 on a daily closing basis opens the door to the high at 12427, after passing the 12290 area!
The advance from 11990 (Left-hand corner chart), the wave „b“ low shows some gap`s to the upside, to classify as „common-gaps“ to my view. This kind of gaps are less important as is a „Breakaway-gap“ or a „Acceleration-gap“!
For more clear wave counts I'd like to see more pattern and I will update the chart in the coming hours.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!
on February 7, N50 shows a „bearish-engulfing“ and I mentioned 3-5 days of declining price ahead.
In fact, N50 declined but just for the following session and gaped to the upside the very next day, creating a „Doji“ on a daily basis. Today the index gaped once again and make a new high at 12201 and negate the bearish pattern.
At the hourly chart, you will observe, that price is trending higher to a zone of resistance at 12262 (green dotted line) and above that level, the door is open to 12290 (blue line)! In this case, N50 has retraced a 0.786 Fibonacci of the past larger decline and it should reverse to the downside for the bearish case.
That means on the other hand, that the rise above the level of 12253 on a daily closing basis opens the door to the high at 12427, after passing the 12290 area!
The advance from 11990 (Left-hand corner chart), the wave „b“ low shows some gap`s to the upside, to classify as „common-gaps“ to my view. This kind of gaps are less important as is a „Breakaway-gap“ or a „Acceleration-gap“!
For more clear wave counts I'd like to see more pattern and I will update the chart in the coming hours.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analysis is at your own risk!