Index had a long awaited breakdown and an unexpected failure of that breakdown.
Normally such failures are followed by sharp rallies, due to short covering, and the current up move has shown this characteristic.
Where to buy ? As per this count, buying signal near 10100 minor support zone is required for initiating longs.
What could be the targets? The tentative projections shown on the chart could be the minimum wave 3 targets.
Where would be the strong confirmation? The continuation above 10179 would be a strong confirmation for these targets to get achieved.
Rest of the notes are on the chart.
Hit Like and share your thoughts. Enjoy the weekend.
Regards Bravetotrade
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The index was just shy of kissing the support zone and reversed higher. As per this count we might be in 5th or 3rd of 3rd. If this is 5th, the wave should end near or below 10420 as 3rd can not be the shortest. Let's see how the waves unfold.
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Market crossed 10420, which means 5th has not ended and we are in a sub wave 3. The current move failed our hypothesis so this post is closed.
//If this is 5th, the wave should end near or below 10420 as 3rd can not be the shortest. // 3 rd cannot be shortest .. ??
Bravetotrade
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@Parasuram, yes, as Mr Elliot put..3rd wave can't be the shortest. Here 3rd is already shorter than 1st, so it should be longer than 5th to keep it in line with Mr Elliot :) A simple measurement gives projection lower than 10420. We ll just be cautious at that point and look for price action. Market is full of surprises.
Parasuram
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@Bravetotrade, exactly... so 5th wave can end anywhere....even here...at 10250
Bravetotrade
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@Parasuram, Any where higher than 3rd high, but nobody knows where it ends unless we count in between wave 5
joel-vg
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In the 30 minute chart - You have labelled as Wave 1 & Wave 2 completed , do you think we are in Wave 3 ?
Thanks for your view
@Bravetotrade,
Thanks for the reply.
if that is the case , we should have a fairly good upmove in the coming days. However i have a different wave count
Bravetotrade
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@joel-vg, the chances of up move are there as per my count but divergence on various indicators suggest declining momentum on larger timeframes (daily).