Nifty Page: 04-04-2013(EOD)

Continuing from yesterday's post:
Q
Now what??
EW labels are now indicating to 5585-5565

UnQ

Today Update:

And Ya looks complete today.

Now next step should be an upward retracement of this Ya(=5971-5565=406) as Yb.

Yb=61.8% of Ya means 5816

Some other related patterns that are apparent :

Wolfe-Waves:

Harmonic Pattern SHARKS:

Andrews Pitchfork

And as I upload these charts, I cannot help smiling. With last two days blood bath around, why am I posting these bullish charts???

I feel we are at an intermediate bottom.

Ya=5971-5565*=406

Yb to retrace Ya

Yc to come down again.

As Ya is a 5 wave form, wave Y( comprising of Ya,Yb and Yc) is likely to be a zig-zag.

So Yb can retrace maximum 0.786x406=320 points.

And minimum it has to go above 5755 before sliding down as Yc.

How can we say that Ya has indeed ended at 5565??

This is a matter of conjecture.

A positive divergence is apparent on MACD  in Daily as well as Hourly and 5min chart:

Hour chart:

5 Minute Chart

But as these are developing waves, one needs to be cautious as the positive divergence means only weakness(of downmove) and doesnot guarantee reversal.

Instead of going long in anticipation, one can wait for a bullish cross-over in Hour MACD or upward breach of channel illustrated in 5 min chart or a daily close above 200 DMA(currently at 5639)