The triangle in Silver is part of an X wave. So, as we get closer to 25.76, we are closer to the end of wave E of the triangle, from where prices can resume the journey lower. But that has not happened yet. This is a wait and watch for what comes next. Let the momentum indicators like RMI confirm that this is happening.
NVDA may be at the end of wave 5 at various degrees in time. The fifth wave itself was inside a rising channel, and we reached the top end. This is the leading stock driving bullish market momentum and any reversal especially below the rising channel would change the way people think about the market for the months to come
WTI recently took support at the 20dma near 74.80 and is now heading higher in wave iii, which can take it to 88$. The rally may not end there as we should develop a five-wave advance. Oil is the outlier in commodities and often manages late-stage rallies before deflationary trends kick in. Stay prepared for an oil price spike in the coming weeks which can impact...
The Nifty index fell in five waves on the hourly chart below and the hourly momentum shows a positive divergence at the lows. The five wave decline indicates a downward trend but in the near term it means that we can bounce back in three waves to retrace 50% or 61.8% of the fall to 21800 or 21850 before we head lower again.
SBI, or the state bank of India, first formed a triangle and then a five-wave move higher. The triangle itself is a pattern that proceeds the final move in a particular direction. By that nature, it mostly occurs in wave B or wave 4 of a trend. So, irrespective of what the triangle meant, the next rally is a five-wave move that can end something. A higher degree...
Tata Steel chart - if we connect all the highs and lows since September, it can look like an ED or 'ending diagonal' pattern. The ED is a triangle pattern that occurs at the end of a trend and is marked as a-b-c-d-e in the direction of the existing trend. After wave e, we try to anticipate a trend reversal. This pattern will further confirm if the ED's lower line...
The hourly chart of the Nifty Smallcap 100 index now shows a five-wave decline. In Elliott wave analysis, a five-wave move in any direction is directional. Meaning that it tells us which side the trend is. From that point on, every bounce becomes an opportunity to sell because the trend is down. The smalcap index was the last man standing in Indian markets, going...
The Private bank index broke the January low ahead of the Bank's nifty intraday today. Is this a lead indication that the next wave is down? I would like to think so. It would be wave C or 3 down for the bank nifty if proven true. The bank indices are below the moving averages already and the Nifty is testing the 20dma today. 45 mins to close the session.
The breadth measured based on the number of stocks above or below the 50dma can be a good sentiment indicator. Weakness shows lower market participation at new highs and should set it up for a correction. Diffusion indicators like this are sometimes useful, especially while gauging the short-term trend.
The entire pattern for Reliance Industries looks like ABC, especially as we have respected the upper end of a rising channel. This perfect channel was possible because the chart is adjusted for the demerger of Jio Financial Services. If your chart is not adjusted, it may not be the same. What are the implications? Watch the RMI and trend indicators.
The only thing I can tell you about this stock is that it is a text book looking head and shoulders top pattern and the neckline is breaking today. So will we do what the text book says? Can the size of the head be replicated. Something to think about especially as you are near the neckline that is now the resistance.
Do you see it coming? What comes next after Z in the English Alphabet? Think about it. Even if you say A, you can count to ABC. So, three waves higher is a minimum for the dollar. But I think maybe there are bigger things happening here, like a third wave. Let the price action confirm.
The Leading diagonal pattern in the EuroStoxx 50 index does not bode well for the European stock markets. Bounces from such a pattern do not last and at 38.2% the X wave that formed in the last 2 weeks appears more than sufficient for the start of a gigantic decline in European equities. That is how I have seen this pattern play out in the past and therefore all...
We are at the bottom end of the 2-4 channel at 4.48% on the 10-year note yields so it may be early to say that the trend has changed even as we are in the final long-term 5th wave which is the final leg of this bull run for bond yields.
For the first time since March, the Midcap index made a lower low, breaking the shelf support and leading the weakness. The much-awaited correction in mid and small caps is here now.
The S&P 500 is getting oversold based on the CBOE Put/Call ratio. It is also at the bottom end of two channels, which could act as a strong support. This appears like a buying zone for long-term investors and traders alike. Just patience for managing the short-term volatility.
Nifty managed to make a lower low today, but the RSI indicator made a higher low, resulting in a positive divergence on the chart. Now, we are witnessing an intraday recovery from there. The proprietary RMI indicator remained in buy mode throughout this time [find it on web.strike.money ]. The recent low found support on the lower Bollinger band but also a 61.8%...
The CBOE Put/Call ratio shows too many Puts being traded relative to Calls, which is akin to previous market lows seen at similar readings. This can mean that the S&P is extremely oversold short term and due for a bounce in the next few days that can take us back to the highs. Patience is needed to see this play out. An actual price reversal should be watched out for.