As the chart shows, Banknifty is breaking upward in a rally as it is moving out of its downward Wedge - The Wedge is a Diagonal Triangle in Elliotwave parlance. When a correction start with a diagonal triangle, it cannot be a full correction - it is only par of it . We are now in a B wave rally of a larger A-B-C correction. One can expect a surge into the resistance areas shown by the horizontal lines. That should then lead to a large and swift downmove.
For now, there is space for a 2000 point rally before the 'surprise and shocking' fall
What is the Fibonacci retracement % taken of A for Wave B
Looking at the chart , can I presume that level from 20500-LOW to the high - 37685 be labeled as WAVE 1 ( with 5 sub waves of 1 ), Wave 2 retraced to 30607.
And now expected Wave B to start. What could be the target of B.?
Then C would fall which may be equal to A ( C=A)
Then a New Bull cycle would begin. This is for education . Please confirm or modify as per your wistom.
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@JagdishKumarPahuja,
HI Jagdish - Yes its daily timeframe
Fib: I've marked the horizontal lines at .382,.5,.618 for now but will reassess as strength comes in, I expect it to hit .618 though
20500- high may have been wave 3 and not wave 1 - check move from much earlier low 16k or so, that could have been wave 1 , so the current correction can lead to a new high months later in Wave 5 . We will need further price action to see ahead - going 1 step at a time now
What is the Fibonacci retracement % taken of A for Wave B
Looking at the chart , can I presume that level from 20500-LOW to the high - 37685 be labeled as WAVE 1 ( with 5 sub waves of 1 ), Wave 2 retraced to 30607.
And now expected Wave B to start. What could be the target of B.?
Then C would fall which may be equal to A ( C=A)
Then a New Bull cycle would begin. This is for education . Please confirm or modify as per your wistom.