Timing is an issue for me & I try best to make most of them happy, but due to work pressure I fail to do so. Hope, you all will understand.
The fall from 1545 has completed 1st set of intermediate complex correction at 1111 - (W)-Green Wave. A corrective bounce was seen to 1345-1355 where minor wave-X(Blue wave) within 1st set of intermediate correction (W) also ended.
This minor wave X took the shape of triangle & gave us key & critical zone 1345-1355.
This corrective bounce gave the 2nd leg of Intermediate correction- (X)- Green Wave so it is very important zone & hence key & critical zone for future trading.
Any move above this zone of 1345-1355 should be seen as a confirmation point & start of new uptrend.
From short term scenario & 1344 high -the fall is impulsive, which looks to complete a clean 5 wave sequence as shown below in 2 hour chart.
Polarity zone of 1220-1245 - An important zone
Polarity zone means once acting as started acting as resistance & vice-versa(shown as green & red arrows). So any move in the zone 1220-1245 if prices face resistance & fails to move beyond that zone, then that zone should be used to exit.
Short Term Scenario -
An impulsive sequence from 1344 to 1146 lows looks in place as divergence is quite visible. So, we shall look for a bounce in the polarity reversal zone of 1220-1245- if it faces resistance & gets rejected in that zone then one should use to exit & wait for further down move which can be used at later duration as buying opportunity.
Long Term Scenario -
Once Intermediate Wave Sequence (W)-(X)-(Y) Green Wave Sequence is done, which likely looks as one leg upside in 1220-1245 zone & falling later to finish the sequence can be a better opportunity to buy in future.
A move above 1345-1355 -is most important as it can confirm that correction is in place.
Sharp Rise -Heading to 1220-1245 zone as expected.
Turning from 1131 -looks good for upside –Above 1185 it will look even better.
Prices are halting at 1180-1187 zone -likely we will see next set of buying only above 1187 crossed & sustained above that zone.
Bang on move- Falls exactly from 1185 from updated last night.
1185-1187 is a strong resistance zone- once taken out on the upside, it travel to 1220-1245 expected target zone.
Day High@1226- Kissed the zone of 1220-1245 as expected - we will wait to see whether we get resistance in this zone or it crosses 1245.
Abhishek H. Singh, CMT
India Regional Manager
India Markets-BSE, NSE chat room- https://in.tradingview.com/chat/#b4sFOMIVqPkq8gfQ