Pre-Market View:
In Elliot Wave Analysis, fourth wave is said to be the foxiest.
And that's what we have been experiencing for the last two months now.
To recall my higher degree EW Labels:
.png)
And the C4 from 5815 downwards so far was "guesstimated" to do a wxy in following way:
.png)
I have used the word "guesstimate" as a developing wave can take many shapes depending upon the news or technical supports like EMAs or TLs that it encounters during its course. Major TLs like the one that is curently under test are breached by a gap or are honoured by a bounce---
And as yesterday we failed to get a gap-down to breach this TL, a bounce up today in any case was expected. Add to it the bullish fervour in global market and we would be in a green day today-- but how bullish should we get????
Not much I would say-----
Remember 34 Hr EMA=5624
50DMA=5630
Important TL and gap resistance at 5650
.png)
That this 5625-5650 zone would be tested in current bounce is almost certain.
But whether this upmove 5549-5650* would be done in a gap-up or Impulse or 3 way form remains to be seen and that would tell us the future course of Nifty---
EOD Post
Although I was not very bullish but was expecting a test of 50 DMA but it failed to do even that.
In fact , at around 12.30 PM based upon following chart I created longs with a target of 5625-30 but it also saw SL getting hit.
Yesterday's low was breached and the smallest degree channel that I illustrated yesterday also was able to contain full day's moves--- now this channel should become our guide-- breach on the upside would take us to 5630-5660 and its breach on the downside wd take us to 5530 .
In Elliot Wave Analysis, fourth wave is said to be the foxiest.
And that's what we have been experiencing for the last two months now.
To recall my higher degree EW Labels:
.png)
And the C4 from 5815 downwards so far was "guesstimated" to do a wxy in following way:
.png)
And as yesterday we failed to get a gap-down to breach this TL, a bounce up today in any case was expected. Add to it the bullish fervour in global market and we would be in a green day today-- but how bullish should we get????
Not much I would say-----
Remember 34 Hr EMA=5624
50DMA=5630
Important TL and gap resistance at 5650
.png)
That this 5625-5650 zone would be tested in current bounce is almost certain.
But whether this upmove 5549-5650* would be done in a gap-up or Impulse or 3 way form remains to be seen and that would tell us the future course of Nifty---
EOD Post
Although I was not very bullish but was expecting a test of 50 DMA but it failed to do even that.
In fact , at around 12.30 PM based upon following chart I created longs with a target of 5625-30 but it also saw SL getting hit.
A positive divergence can be seen in above chart as the 5 min Stoch as well as RSI-14 did not make fresh lows while price hit new bottom today.
So a breach of channel on the upside looks more likely.
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