A tremendous fall and an awesome Hill climb, the first quarter of the FY-20 has been full of thrill for traders and confusing for investors looking to average or buy back. First of all the fall wasn’t a crash, it was purely pattern driven with an ultimate target of roughly 7200-100. Predicted Chart has been attached below.
The SGX Nifty made a low of 7155. And the rest event in spot market is recorded in everyone’s charts. Now that market has just kissed the retracement level of 0.618 at roughly 10550 levels from its low a Bearish Wolfe Wave has formed.
-The Bearish Wolfe Wave in Daily chart has been confirmed with a Bearish Engulfing pattern.
-The Bearish Engulfing pattern has been formed at official level of 0.618.
So this has to be taken seriously, or staying cautious at minimum by squaring of the over exposed positions.
In this Chart what is been tried to convey is as follows:
- The blue lines may act as support in this downward journey
- The target line is mentioned with highlighted text in the chart. Which comes out to be 10100 or 9380 – 9360 Levels approximately by 30th June to 7th July after 1:15pm.
- What the scenario of the support would be clearer near the dates.
And if this downside correction occurs it is completely justified. During an upside rally it is quite common to come back to a downside retracement level for an upside bounce. Who knows it may form a Bullish Wolfe Wave during the downside journey. Here the retracement level of 0.618 is 10550 and 0.382 is 9389 with respect to the trend of 20th Jan to 24th March.
The prediction done earlier for 10550 levels has been attached along with this chart below.
Happy Investing.
THIS IS FOR EDUCATIONAL PURPOSE ONLY
The SGX Nifty made a low of 7155. And the rest event in spot market is recorded in everyone’s charts. Now that market has just kissed the retracement level of 0.618 at roughly 10550 levels from its low a Bearish Wolfe Wave has formed.
-The Bearish Wolfe Wave in Daily chart has been confirmed with a Bearish Engulfing pattern.
-The Bearish Engulfing pattern has been formed at official level of 0.618.
So this has to be taken seriously, or staying cautious at minimum by squaring of the over exposed positions.
In this Chart what is been tried to convey is as follows:
- The blue lines may act as support in this downward journey
- The target line is mentioned with highlighted text in the chart. Which comes out to be 10100 or 9380 – 9360 Levels approximately by 30th June to 7th July after 1:15pm.
- What the scenario of the support would be clearer near the dates.
And if this downside correction occurs it is completely justified. During an upside rally it is quite common to come back to a downside retracement level for an upside bounce. Who knows it may form a Bullish Wolfe Wave during the downside journey. Here the retracement level of 0.618 is 10550 and 0.382 is 9389 with respect to the trend of 20th Jan to 24th March.
The prediction done earlier for 10550 levels has been attached along with this chart below.
Happy Investing.
THIS IS FOR EDUCATIONAL PURPOSE ONLY
