I have marked two red circles on the chart, depicting a classical double top bearish pattern and what we call a flat correction in EWT .. Accordingly with the first 15 min candle, it was evident where Nifty was headed to today .. had been a flat correction for the rally upto 12022, Nifty should have taken support at 11860 or 11820 levels and continued with the rally ... However, the fall continued and Nifty closed below 11700, maybe indicating that the correction is not of the previous rally till 12022, maybe Wave 4 is not yet over ... Waves have been labeled on chart .. A food for thought, probably, Wave 4 is still continuing and is an Extended Flat correction .. today it might have started unfolding its final wave Y .. If that be the case, then we are headed to probable 10500 levels ... For tomorrow, 11600 is a key support zone and the resistance would be 11760 as marked on chart ... If Nifty manages to break the support in coming days, then probably our assumption of it being an extended flat correction might well be true.
Note - Views expressed are for educational purpose only and not meant for trading instruments
Note - Views expressed are for educational purpose only and not meant for trading instruments