For the sake of continuity,yesterday's Nifty page must be seen first:
Nifty Page: 16-08-2012
And the Hour chart shows the breaking of upward channel from 5033,confirming that retracement has set in:
And its too early to find a discernible form as yet---
A stop loss at yesterday's high 5391(Nifty spot) is recommended for shorts.And as a form for the downmove is not yet clear,first profit taking on the basis of Chart 1(Hour chart) momentum indicaters going into oversold zone is recommended..
Best of luck for the day !!!
9.21AM
Stop loss for shorts at 5404 would be more prudent because if yesterday's move 5490-5356=34 is considered "a",then "b" can retrace upto 138.2% of a i.e 5403
10.35 AM
EW being a calculation of probabilities and RSI -14 (in Hour chart)continuously showing negative divergence, I must mention following Probability as well:
1.28 PM
1.35 PM
ED pattern for 5v is out.
2.10 PM
EOD
In my yesterday's post: Nifty Page:16-08-2012 I had said that an intermediate top seems to have been formed at 5390 and based upon support from other factors like negative diversion etc gone short.
These shorts were carried overnite as the Hour charts showed the channel getting breached,indicating further weakness.However,the top of 5390 was breached today,calling for a change in EW labels.But before that,lets have a look at the Hour channel as it stands now:
.png)
Thus the channel break has been further confirmed today.
However,EW sync with this scenario has got disturbed putting a question mark over the intermediate top formation.We may back-test this channel on Monday morning again and I expect choppy sessions again on Monday and Tuesday when 5400 may get breached again before the retracement begins.
5444 ,however,is not likely to be breached.
Nifty Page: 16-08-2012
And the Hour chart shows the breaking of upward channel from 5033,confirming that retracement has set in:
This retracement should be either a 3 wave ABC or a combination of corrective forms--abc-x-abc
Yesterday it move was limited in following channel(5 min chart):
A stop loss at yesterday's high 5391(Nifty spot) is recommended for shorts.And as a form for the downmove is not yet clear,first profit taking on the basis of Chart 1(Hour chart) momentum indicaters going into oversold zone is recommended..
Best of luck for the day !!!
9.21AM
Stop loss for shorts at 5404 would be more prudent because if yesterday's move 5490-5356=34 is considered "a",then "b" can retrace upto 138.2% of a i.e 5403
10.35 AM
EW being a calculation of probabilities and RSI -14 (in Hour chart)continuously showing negative divergence, I must mention following Probability as well:
ED pattern for 5v is out.
2.10 PM
In my yesterday's post: Nifty Page:16-08-2012 I had said that an intermediate top seems to have been formed at 5390 and based upon support from other factors like negative diversion etc gone short.
These shorts were carried overnite as the Hour charts showed the channel getting breached,indicating further weakness.However,the top of 5390 was breached today,calling for a change in EW labels.But before that,lets have a look at the Hour channel as it stands now:
.png)
Thus the channel break has been further confirmed today.
However,EW sync with this scenario has got disturbed putting a question mark over the intermediate top formation.We may back-test this channel on Monday morning again and I expect choppy sessions again on Monday and Tuesday when 5400 may get breached again before the retracement begins.
5444 ,however,is not likely to be breached.
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