CNX finance is in the middle of making 7 leg bow-tie diametric Neo wave corrective pattern.
This pattern has 7 leg each having corrective characteristics.In this pattern we see price contraction in first three legs followed price expansion in last three legs.So far we are done with wave A,B,C,D.wave E is going on potential target of which is coming at 17250.Once we get to this level we can bounce in form wave F till 17950 post which we can again witness selling in form of wave G.
On the basis of this view remains sell on rise at the mentioned level.Sell trade should be taken once we reversal candle from around mentioned level and in the next candle we get a close below reversal candle,keeping reversal candle high as selling stop-loss.One can even take long trade with the same logic for entry and stop-loss post wave E is done for wave F rise, but ideally long trade should be avoided as view is bearish and also momentum is on the sell side.
In this pattern following rules are mentioned for target calculation.
A=G(but can even complete @ 61.8% of wave A)
B=F
C=E
Once this seven leg's are done we can see bounce in the form of wave X/A of new corrective pattern.
Disclaimer:This are my views no trade should be exited or build on it's basis.i am posting this analysis for my future reference.
This pattern has 7 leg each having corrective characteristics.In this pattern we see price contraction in first three legs followed price expansion in last three legs.So far we are done with wave A,B,C,D.wave E is going on potential target of which is coming at 17250.Once we get to this level we can bounce in form wave F till 17950 post which we can again witness selling in form of wave G.
On the basis of this view remains sell on rise at the mentioned level.Sell trade should be taken once we reversal candle from around mentioned level and in the next candle we get a close below reversal candle,keeping reversal candle high as selling stop-loss.One can even take long trade with the same logic for entry and stop-loss post wave E is done for wave F rise, but ideally long trade should be avoided as view is bearish and also momentum is on the sell side.
In this pattern following rules are mentioned for target calculation.
A=G(but can even complete @ 61.8% of wave A)
B=F
C=E
Once this seven leg's are done we can see bounce in the form of wave X/A of new corrective pattern.
Disclaimer:This are my views no trade should be exited or build on it's basis.i am posting this analysis for my future reference.