Banknifty Elliott Wave analysis points to a top

I have marked the waves in the chart and here I will explain them a little more in detail.
Wave 2 is a deep correction of wave 1 and retraces 76.4% of the wave 1.

Wave 3 is a 161.8% extension of the wave 1 and is composed of five inner waves, though I have not marked them on the chart to avoid too much confusion.

Wave 4 is a 38.2% correction of wave 2. Again according to the principle of alternation the wave 4 should have corrected to a lesser degree than wave 2, wave 2 was a 76.4% correction so we would have been expecting a 23.6% correction or a 38.2% correction. We got a 38.2% correction.

The wave 5 is 138.2% extension of the total move from starting of the wave 1 to the top of wave 3. Another Fibonacci principle that was respected.

Thus there is a good chance that we could get a pretty good correction here. We can at least expect a 23.6% correction of the total move in this impulse, in the charts that can be seen at 19606. Thats the first level that we could get in this corrective wave. I think the correction could be a little deeper than that. Post that we should turn around up and look for targets of 22,000. That of-course is for another time.


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