Nifty-What A Crack 17600 to 17260-What Next ?-Ending Diagonal

In old school method or traditional technical analysis pattern which rises & are messy in nature are called “wedge”.

In Elliott Wave analysis we call it “Ending diagonal or Type-2 diagonal” which ends the current trend. Both terms imply the same thing – reversal ahead or next.

Index has been in uptrend since key support 17260 which was suggested as Part -B plan in the last idea - "Leading Diagonal or Type-1 diagonal"

The Sharp Fall from 17600 to 17260 & later bounce upside from 17260 was amazing moves for Index Nifty on Budget Day - 1st Feb 2022 & discussed over the last idea.

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Trading Strategy
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Plan A - Sell Below 17730 / Should fall below 17700 as well for confirmation.

Target 1- 17525

Target 2 - 17245

Target 3 - 17075 if fall continues below 17245



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Last Idea - Leading Diagonal or Type-1 Diagonal
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Trade active:

2:51 Hrs / 2nd Feb 2022

Last @ 17775

Target 1 - 17525 - Partial Profits to be booked as Index can take support / Only if 17525 gets broken then continue downside.

Thanks

Trade active:

9:59 Hrs / 3rd Feb 2022

Last @ 17724

As key zone suggested 17729- 17700 was broken & low was made at 17679.

Unless 17765 is broken on upside Index is still open for first downside objective of 17525

Trade active:

11:01 Hrs / 3rd Feb 2022

Last @ 17707

Index is doing sideways & holding below 17729 - key minor resistance at the moment.

Trade active:

12:21 Hrs / 3rd Feb 2022

Last @ 17646

Day low @ 17625

Traders have to book partial profits in 17625-17650 as as development is slow. Going below 17625 - have to continue more on downside for 17525. Thanks

Trade active:

12:51 Hrs / 3rd Feb 2022

Last @ 17685

Partial profits booked in 17625-17650 zone. If Index starts moving upside above 17729/17730- minor resistance then It can attempt 17795 back again or moving below 17625 - our outlook is still remains same for target 17525.

Secondly, If Index travels close to 17729/17730 & fails to cross further upside then traders can look to sell once again.

Trade active:

1:30 Hrs / 3rd Feb 2022

Last @ 17644

It's a range bound market between 17625 to 17690 - Nothing to do much. Index from bottoms close to 17625-17650 will attempt upside 17690 or so & holding 17729 - It will fall back again.

Trade active:

3:00 pm / 3rd Feb 2022

Last @ 17602

Index could be reaching close to bottoms & hold 17585 levels so holding above 17600 - All profits to be booked in sell trade