Minor wave 4 in the making:avoid buying

UNDERDOG-29 Updated   
NSE:NIFTY   Nifty 50 Index
seems like nifty has started wave 4 on minor degree in the on going impulse.one should avoid buying at current levels unless we see a decisive close above 18100 and wait till 17100 level is reached on index as it is the 38.2% retracement of previous wave 3 along with price action support zone.

Important rasistance level are 17684-17763-17842. Shortselling can be done once we get a hourly candle closing below previous candle's low around any of the rasistance level mentioned above.Here ideal stop would be 18100 and target would be 17100.

Manage position size as per your risk apetite.

Disclaimer:This are just my view on the index,no position should be taken solely on its basis.
Trade closed: target reached

Nifty has reached at 17000 level,138% extention of wave A from wave B top is also coming at 17000,from here we have support at 16800,short's should be trailed at 17100.

In coming days we can have a bounce in form of wave X,but for that One needs to have enough evidence before going long.

Nifty has taken support of 50% retracement of Minor wave 3 shown in yellow.As the last fall(wave c shown in earlier update) extended 161% of wave A shown in earlier update,chances of this correction being an triangle increases as wave 4(on intermediate degree)can not be a zigzag correction.Hence going ahead we can see bounce in the form of wave D which can take price to 17400 level.Point of invalidation is 16800,if index goes below 16800 then counts are invalidated.

We already have an hourly close above previous candles high hence shorts should be covered.Once index manages to close above 17000 one can go long with a hourly closing stop-loss of 16800 on the down side and expect target of 17400 on the upside.

As mentioned we has a bounce till 17400 in the form of wave D.Target of the long Trade mentioned above got achieved.Now again we have seen fall and unless we see hourly close above 17250,longs should be avoided on the contrary one can go short with 17250 as a stop-loss for a target of 16800.

PS:Recent fall from 17400 is wave E.Minimum target for wave E of 61% retracement of wave D is achieved at 16970.

We have started wave 5 on intermediate degree.Use this bounce to exit long.Target for wave 5 is 17700-70.

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