Nifty has entered into combination correction from 19th Oct high

NIFTY .


- Nifty topped out its 5 wave impulse at 18600.
- From there on it started a WXY combination correction, with W leg completed today (pending confirmation). W leg was a 5-3-5 ABC zig-zag structure as labelled on the chart. W leg may have been completed today as it has hit the lower line of corrective channel.
- Ideal target for W lies near 17720 as per fibonacci relations (A=C).
- A 3 wave rally (X wave) is expected with sluggish movement, as it will be against the trend.
- A long trade can be taken after W wave confirmation for a target of 18280 as per fibonacci retracements.

Note: Above is just a framework. Take trade based on your risk management and understanding.

Comment:

In continuation to the previous post-
- The 5 wave impulse up to 18600 completed minuette wave 5 of minute wave 3 degree.
- There on we witnessed minute degree wave 4 correction which completed at the low of 17615.
- The correction was sharp and will not require a double zig-zag combination. as the low ended in the price territory of wave 3 and 4 of previous degree.
- A long trade now for minute degree wave 5 can be taken.

Comment:

Hold your long positions with a stop below 17600. I know things are looking bleak. But hold only if you have conviction.

Comment:

With today's price action, it is pretty clear that all this while the WXY correction was in play. although the X wave correction didn't look like a 3 wave advance, which fooled many of us.

We can look for the bottom at W = Y which is at 17250. No point in shorting positionally from here. Trade as per good Risk to Reward.

Trade closed: target reached:

With today's low, looks like the end of impulsive Y wave end is in place. I don't expect this low to be broken in the near term.

Hope you liked the analysis.