- Nifty 50 has been in a strong up move from several weeks and days. Everyone is expecting a correction. and this analysis shows the study which shows that Nifty 50 is preparing for a down move. - throughout it's upmove nifty 50 has gotten into a tight range now making a rising wedge pattern which has a high probability of breaking down and high profitability. - Along with it has also formed a double top at the resistance of the rising wedge - My 3 point is that as per the elliot wave theory nifty 50 has completed it's 5th wave and is ready for a correction - Last point which supports the bearish claim is the RSI divergence which can be clearly spotted with a naked eye in the chart. I believe in keeping things simple and accurate rather than filling up the chart with a lot of Noise.
If you found this analysis insightful and helpful please give it a like and leave a comment if you have any doubt or for discussion I would love to hear your opinion on this analysis.
Keep shorting and lose money ! Patterns become meaningless against the huge amount of liquidity being pumped
Ajuba1205
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@rishon1313, My idea is not too short for weeks to come. But It is given in a 1H time frame so I suggest that if it breaks it will give a small correction till 13100 levels and then might resume the bullish momentum or not.
SomeoneWithSkills
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The reason it will not come down because everybody is waiting for the correction ... what I think is this will form a bullish flag pattern ...
Ajuba1205
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@SomeoneWithSkills, I am not anticipating a deep correction but a small correction around 13100 levels on a smaller time frame
saliloltikar
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Waves are always subject to each Elliotist. But important thing is to ensure that the wave properties comply with the nature of each wave. Fibo is not EWA. Understanding the waves is very important. Like the wave marked wave 2 here does not have the sequence of either 3-3-5, 5-3-5 or 3-3-3-3-3. So it cannot be marked a corrective wave.
Ajuba1205
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@saliloltikar, You may be right but in my practical experience the charts dosen't provide you with exact proportions. you can backtest the same and find that corrective waves have taken place without proper sequence many times in past.
I think we are completing a 3 rd wave here. The 2 nd wave was shallow so expect a deeper 4 wave may be upto 12500 and then a final 5 th wave rise.
Ajuba1205
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@NileshThete, My analysis is on 1H chart and yes it maybe another wave on a higher time frame but I am of the point that It is most probabaly the 5th wave in the current time frame. and A small corrective wave might be in order.
ckirtane
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yes,everyone is waiting for correction & i think it will come suddenly (probably on 16/17 dec). earlier also nifty has corrected twice by >400 points in a day by making new high in morning .irrespective of FII inflows.