I was looking at Bank Nifty on monthly charts and was trying to fit it into an impulse But I saw and overlap 13407.35(purpoted end of wave 4 of intermediate level) and 13414.30 (purpoted end of wave 1 of intermediate degree) . Wave 4 can never overlap wave 1 . Because of this I had to label the entire move from 2007 as a triple for Bank Nifty . (Caveat Bank stocks pre date Bank Nifty - so we may not be getting the full wave - For a better study we should look at the oldest listing of a Public Sector and a private sector bank - but anyway) .
There are the observations
1. There is a divergence in the present wave Z . And is not in an oversold zone. Thats not good .
2. If it is a triple . We will have A-B-C . So this C is not a 3 . So C is the last wave . And this C is impulsive .
3. For conservative targets A=C . It comes at 24504 and 1.618 comes at 28641 .
4. We can also calculate the target from within C also which is an impulse .
There is a cluster of targets in the vicinity of 25500 - 26000. This is the actionable point for opening shorts .
Can you look at this alternate.... your label charts vs alternate.
WC = 1
B after this = 2
YC = 3.i
X @ 13407.35 = 3.ii
A after this point = 3.3.i
B = 3.3.ii
Current ongoing wave = 3.3.iii.....the eye of the storm
Simple cue....in entire chart history you have plotted..have you even seen strong back to back 5 monthly bull candles with a series of higher high - lows..and every fall being retraced in faster time ????
Lets accept the bias and follow :)
U see that in Y wave C is 2.618 times wave A . So I wont be surprised if wave C in Z goes 3.618 times wave A . Secondly had it been a 3 of 3 of 3 we should have had highest RSI measures in an over bought zone . But there is a bearish divergence . So the jury is still out . Best way is to trade for higher levels with trailing stop loss . Limit risk , eliminate risk and protect profits. I am trading it this way .
What is the RSI level in week chart...vs entire BN Life chart ? :)
Got your point...my key learning from my Master...is Negative divergence usually fails in a 3rd wave...
I always Or used to count Alphabets in corrections and numbers in Impulses....