On 22nd Aug2016- Bank Nifty had a high@19494 -which could act as polarity reversal zone if BN opens gap down today as well -We should look for 19490-19550 as the -which was resistance earlier.
Once BN , holds some time in the zone 19490-19550- we should avoid taking short positions & kindly wait for bounce to join the downtrend.
Likely zone of 20000-20100 shall become an objective zone for bounce back (which is not fixed yet-can change in future)
3rd waves are the wonder waves for me -which amuse me a lot.
How do you its a 3rd wave?
When you see lot of gaps in a price structure which is evident in BN since the recent high@20575 - then we could easily come to know that it is 3rd waves- don't even mess with these waves because they can give you 440 volt current.
Abhishek H. Singh, CMT