Pre-Market View:
For past few days I have been highlighting 5729 and 5637 as two important price points andbreach of anyone of these to decide further pattern.
And when 5637 broke down yesterday,the easiest way forward was to see the labels as:
(mentioned in EOD post yesterday also):
SW1=5815-5666=149
SW2=5666-5729=63
SW3=5729 downwards as a 5w Impulse
(i)=5729-5637=92
(ii)=5637-5725=88
(iii)=5725--- to do minimum 1.62x92=149=5575
And being in (iii) of sw3 a gap-down today should have been the most obvious inference.
However,global clues have been indicating a gap-up--- and that means we might not have begun (iii) of sw3 and may still be in (ii) of sw3.(and that's a hallmark of EW labels where developing waves can only have guesstimates till they end).
(ii) of sw3 was seen by me as a wxy wherein:
w=5637-5725(3wave)
x=5725-5651(3wave)
y=5651-5714(3wave)
This can be illustrated in charts as follows:
.png)
And as y "failed"(ie failed to go above w),next downmove was fast and ended below the starting point of w(5637).
These labels may still hold if we donot breach 5714 on the upside as today's gap-up(expected) may be only a retracement of downmove 5714-5636 and may remain limited to 5698(80% of 5714-5636).
However,if we breach 5714 then we may still be in (ii) of sw3 in following manner:
.png)
And (iii) of sw3 may start later.
And all this discussion has one prominent point---
5729 should not be breached.
EOD post:
Only take-away from today's trading session was a lower low.
Otherwise a listless day--- closed below 20DMA and 5/20DMA bearish cross.
.png)
For past few days I have been highlighting 5729 and 5637 as two important price points andbreach of anyone of these to decide further pattern.
And when 5637 broke down yesterday,the easiest way forward was to see the labels as:
(mentioned in EOD post yesterday also):
SW1=5815-5666=149
SW2=5666-5729=63
SW3=5729 downwards as a 5w Impulse
(i)=5729-5637=92
(ii)=5637-5725=88
(iii)=5725--- to do minimum 1.62x92=149=5575
And being in (iii) of sw3 a gap-down today should have been the most obvious inference.
However,global clues have been indicating a gap-up--- and that means we might not have begun (iii) of sw3 and may still be in (ii) of sw3.(and that's a hallmark of EW labels where developing waves can only have guesstimates till they end).
(ii) of sw3 was seen by me as a wxy wherein:
w=5637-5725(3wave)
x=5725-5651(3wave)
y=5651-5714(3wave)
This can be illustrated in charts as follows:
.png)
These labels may still hold if we donot breach 5714 on the upside as today's gap-up(expected) may be only a retracement of downmove 5714-5636 and may remain limited to 5698(80% of 5714-5636).
However,if we breach 5714 then we may still be in (ii) of sw3 in following manner:
.png)
And all this discussion has one prominent point---
5729 should not be breached.
EOD post:
Only take-away from today's trading session was a lower low.
Otherwise a listless day--- closed below 20DMA and 5/20DMA bearish cross.
.png)
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