Decline to 17683 completed wave X and the Index has since moved higher. From wave X low, the rally took the form of a zigzag
a-b-c, where wave a ended at 17971, wave b ended at 17909, and wave c of (w) completed at 18208. In our last Chart of The Day update, we said that wave (x) pullback is in progress towards 17807 - 17946 (50 – 76.4 back), and buyers should come from this area to push the Index to new high or at minimum 3 waves higher to correct the decline from 18208 . Since our last update, preferred Elliott Wave
view suggests wave (x) pullback has ended at 17918 and the Index has bounced as anticipated. The Index is expected to resume rally higher as far as wave X low at 17683 holds. Readers of our Chart of The Day who took a long position at the 50 – 76.4 back area above as per previous chart of the day should have a risk free (break even) trade already while waiting for possible continuation higher. We don't like opening a new position at this stage, neither buying nor selling, and prefer to stay long from the blue box with risk free trade.