Pre-Market View:
5729-5637 has been identified as the range for sideways move for quite some time now.
For a few days,we traded at the lower end of the range and tested 5637 almost daily but couldnot break it.
Now we have come to the upper end of this range.
As mentioned in yesterday's EOD post, initial weakness is expected as 5 minute chart was showing a wedge formation and negative divergence was visible as Nifty was making fresh intraday tops:
.png)
However Daily charts have seen a convergence of 5/10/20 DMAs in 5678-5688 zone and unless we open below this zone,it may become a good support for intra-day longs.
.png)
Today being the last trading day of the week,it assumes extra importance as today's high and close would set the tone for coming week.An intraday high above 5752 and a close above 5676 would be indicating that the Corrective (expected from 5815 downwards) may take (still)longer time to show a deeper price-action.
EOD post:
I have attempted to label the sideways rangebound move in following manner:
.png)
And if indeed this was a Flat Corrective ABC (where C failed to go above A) then the question that first comes to mind is---which was the Impulse(or Daigonal) being retraced???
Distortion caused in charts( by the "freak" trade earlier to this Corrective) doesnot allow me to "convincingly" answer that but a corelation with Nifty Future chart tells me that 5815-5637 "can" be labelled as a leading diagonal and the above illustrated Flat was a retracement of that.
.png)
And as C of this Flat failed to go above A, next move should be a fast and furious one--- pointing to a gap-down opening on Monday.
Caution: Attempts to label developing waves are at the most "guesstimates". The above-mentioned "guesstimate" would become invalid if we tick above 5722.
5729-5637 has been identified as the range for sideways move for quite some time now.
For a few days,we traded at the lower end of the range and tested 5637 almost daily but couldnot break it.
Now we have come to the upper end of this range.
As mentioned in yesterday's EOD post, initial weakness is expected as 5 minute chart was showing a wedge formation and negative divergence was visible as Nifty was making fresh intraday tops:
.png)
.png)
Today being the last trading day of the week,it assumes extra importance as today's high and close would set the tone for coming week.An intraday high above 5752 and a close above 5676 would be indicating that the Corrective (expected from 5815 downwards) may take (still)longer time to show a deeper price-action.
EOD post:
I have attempted to label the sideways rangebound move in following manner:
.png)
Distortion caused in charts( by the "freak" trade earlier to this Corrective) doesnot allow me to "convincingly" answer that but a corelation with Nifty Future chart tells me that 5815-5637 "can" be labelled as a leading diagonal and the above illustrated Flat was a retracement of that.
.png)
Caution: Attempts to label developing waves are at the most "guesstimates". The above-mentioned "guesstimate" would become invalid if we tick above 5722.
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