Hello Traders,
NIFTY50 has moved sideways within the past two days, which support my idea of a flat or a triangle correction as I wrote on Wednesday, 21! After closing the open gap yesterday (Oct. 22) at 10309.85, NIFTY touched this zone today for a second time, may creating a „double-bottom" short term from the perspective of the classic Chartanalys. Todays a/d-R. was weak at 0.61, while it was at 0.96 yesterday! Overall we see a sideways trading betwen the levels 10309.85 and the top, made at 10363 (closing basis) today! So we are able to measure the next move to the up- and downside, give us targets for a breakout to the upside at 10416.15 as well to the downside at 10256! Another target zone is at 10394.45, the 1.618 FibExt of wave a! From an Elliott perspective this move (since Oct. 21) can be classifed as a flat pattern in a wave b of (b)! As before, for a triangle pattern I need more clearaty and facts to count this move as one.
Playing the card of a wave b, which is not done to the upside to my view, it will be able (if it happen so..) to classifed a move to ~10416 as a „false-breakout“ which will lead NIFTY50 to a downside target around 10292 at minimum and make it a “running-flat“ (a rare pattern) and equals wave c=a and 10241.46 or shy below wich will close the open gap from Oct. 16-17 by opening bell and give us a 1.618 FibExt of wave (a)!
To explain my view to NIFTY, please notice that the past two days have shown overlapping waves which are not part of an impulsive move, either than a starting move and the opportunity to count a starting move as a „Leading-Diagonal“! So again, I favor a corrective move in a wave (B) which is not done right now, with higher targets to expect short term.
By observing NIFTY50 on a daily basis, the shown tradingrange (open to close basis) is at 10 points today, yesterday at 8 points and at Oct. 21 by less than 3 points. I think you will be with me, when I say that this behavior is not one to be classifed as an impulsive one!
NIFTY Bank, which leads the upside correction (?) within the last days is showing weakness also, creating a „bearish-engulfing“ on a daily timeframe which need to be confirmed by Monday`s trading session. The same traing behavior also is to observe at SENSEX, NIFTY200/500 which will make this market to one where a sharp move within the next days is to look for!
Which side this movement will show is yet not clear, but if you read my words, you will get an idea of it!
To be continiued....
Have a great weekend....
ruebennase
Questions and Comments are welcome!
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 NSEIndia.com and moneycontrol.com!
NIFTY50 has moved sideways within the past two days, which support my idea of a flat or a triangle correction as I wrote on Wednesday, 21! After closing the open gap yesterday (Oct. 22) at 10309.85, NIFTY touched this zone today for a second time, may creating a „double-bottom" short term from the perspective of the classic Chartanalys. Todays a/d-R. was weak at 0.61, while it was at 0.96 yesterday! Overall we see a sideways trading betwen the levels 10309.85 and the top, made at 10363 (closing basis) today! So we are able to measure the next move to the up- and downside, give us targets for a breakout to the upside at 10416.15 as well to the downside at 10256! Another target zone is at 10394.45, the 1.618 FibExt of wave a! From an Elliott perspective this move (since Oct. 21) can be classifed as a flat pattern in a wave b of (b)! As before, for a triangle pattern I need more clearaty and facts to count this move as one.
Playing the card of a wave b, which is not done to the upside to my view, it will be able (if it happen so..) to classifed a move to ~10416 as a „false-breakout“ which will lead NIFTY50 to a downside target around 10292 at minimum and make it a “running-flat“ (a rare pattern) and equals wave c=a and 10241.46 or shy below wich will close the open gap from Oct. 16-17 by opening bell and give us a 1.618 FibExt of wave (a)!
To explain my view to NIFTY, please notice that the past two days have shown overlapping waves which are not part of an impulsive move, either than a starting move and the opportunity to count a starting move as a „Leading-Diagonal“! So again, I favor a corrective move in a wave (B) which is not done right now, with higher targets to expect short term.
By observing NIFTY50 on a daily basis, the shown tradingrange (open to close basis) is at 10 points today, yesterday at 8 points and at Oct. 21 by less than 3 points. I think you will be with me, when I say that this behavior is not one to be classifed as an impulsive one!
NIFTY Bank, which leads the upside correction (?) within the last days is showing weakness also, creating a „bearish-engulfing“ on a daily timeframe which need to be confirmed by Monday`s trading session. The same traing behavior also is to observe at SENSEX, NIFTY200/500 which will make this market to one where a sharp move within the next days is to look for!
Which side this movement will show is yet not clear, but if you read my words, you will get an idea of it!
To be continiued....
Have a great weekend....
ruebennase
Questions and Comments are welcome!
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 NSEIndia.com and moneycontrol.com!