The first leg of the current fall from the top of 9889 is impulsive in nature. So, another leg on the downside would be imminent. Now, where this fall would end, there are some possibilities
Case 1: A 100% move from the top would take index to 8808 which is an ideal case scenario, as per the text book.
Case 2 & 3: It's my personal experience that markets extend their corresponding waves to 127.2% or 138.2% which in this case comes at 8598 and 8500. These kinds of structures are visible in the markets by more than 70-80% of times.
Case 4: This would be destructive. If the index continued to fall in the current wave and broke 8300, it would signal a break of 7511 soon.
Invalidation: The invalidation of the pattern happens above 9400 and the markets would be moving in different structures, which could be decoded later. As of now, these are the probable possibilities. In case invalidation happens, we might be ready for a move towards 9760 and 9915.
Trade closed: target reached
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A 100% extension up to 8808 has happened and a trailing stop of 8925 has been triggered. Trade closed.
As case 1 has been done yesterday what’s the way forward !!
aditya96402
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Hii what’s the scenario if market touches 8808 and comes back to 9000 levels !! What’s the scenario then !!
aditya.thukral423
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@aditya96402, The stops adjusted to 8925, which would be triggered today. It would be an exit and a buying possibility with yesterday's low as stop loss.
aditya.thukral423
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@aditya96402, Also this buying opportunity would be a short one upto 9000-9020, a complete reversal in prices would only be seen above 9135.