Friday, 14th Oct2016 -a non trending day for traders as markets were range bound between 8550-8600. Likely, whenever it went close to 8600- I was bearish & even after it was about to cross 8600- I strictly updated that buying will be a risky element & traders could get trapped- In last time slot, which was even evident -just went & made new high@8604 & turned sharply down till 8575.
Whenever markets do this kind of trend- it is always better to stay sidelines of the market rather than guessing where it will head & getting frustrated.
So, I said, let Nifty break 8550 then it will indicate that weakness is still left-in that case we shall look for target zone 8480-8490 & bounce later on.
This bounce has to be substantial as structure from 8968 highs it is leading diagonal has five waves i-ii-iii-iv-v waves each wave is divided internally into 3 waves. These leading diagonals are retraced deep so I am expecting a bounce in the zone 8850-8900 but it should not go beyond 8968 highs otherwise -this whole structure will become invalid.
So, let us not hurry, one thing at a time- let nifty first fall below 8550 - to see how much it travels down & whether it takes support in the desired zone of 8480-8490.
Regards, Abhishek H. Singh, CMT
Comments
InsiderB
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Saw some comments about wave counts, so just thought of inviting Myself to the party, Whenever we do wave counts it purely depends on individual who is analyzing. On same chart every elliotician can plot different wave count, that doesn't mean someone is wrong. Its always user preference when it comes to Elliott's & his own set of rules, so Abhi is right !
WaveTalks
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Positive criticism helps an individual to develop. We all should learn & move forward. Thanks Insider & Selvamgeetha.
WaveTalks
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Can you recognize the picture of nifty @8678
selvamB
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For your kind attention, wave count should be accurate otherwise it will give wrong direction
Wave b the current ongoing one retraced more than the start of wave a , you won't have effective wave C .the maximum will be 78.6%% of wave b.More over now we had 5 wave down which may have extension also possible
WaveTalks
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I am calling this as wave-1 down. Let us see what is next
selvamB
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Your count on wave IV is not correct, as per alternative to simple correction in wave ii,Wave iv must be flat, Now 'a ' is completed and 'b' is ongoing ,1,2,3over,4 and 5 pending. As you said correctly after the end of 5th wave we ll see ' waveC ' the final uptrend will decide the Market Move in future.
WaveTalks
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Its a guideline -alternation- price is most important for me & either ways iv-th wave has already passed. What matters next is the bounce.
WaveTalks
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By the way thanks
SohilShah
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can v assume this whole leading diagonal is the A wave?