Nifty prediction for 09th August, Elliot wave and Gann fan based
Today Nifty has given most of the moves as per the post I created yesterday. Continuing to that here is the predictions for 9th August.
Nifty is moving towards circle [6] where it has 3 Gann fan lines, 2 Asc in Red and Green and 1 Desc in green. These lines and important along with the price action.
Possibility#1 If Nifty does not go below ASC red line( at least 24962 must not be broken) and gets support around 24000 area then a move till 24180-24200 might come.
For any further up move it must come the wave drawn in blue color and final target can be up to 24390-24420 which has been acting as strong resistance during the week.
Possibility#2: If nifty breaks below 24962 and gets some support from Desc Gann fan line in Green then it can show small pull back touching any of the ASC Gann fan lines (green or red) and then if resistance is observed then we can see a good downfall in the form of wave drawn in red color which can go up to 23626. Move targets and time may not match perfectly but you can see the waves formation happening sooner or later.
Possibility#3: Nifty might remain in the triangle shown through out the day means muted market i.e. option premium decay day. Once nifty moves out of the triangle then you can see the wave formation but then targets might get changed with delay in moving out of the triangle.
Gap up strategy: If nifty opens gap up in the range of 24150-24200 then a short trade can be executed with 24222 as stop loss and then need to keep checking if it is following waves in blue or in red.
Nifty is moving towards circle [6] where it has 3 Gann fan lines, 2 Asc in Red and Green and 1 Desc in green. These lines and important along with the price action.
Possibility#1 If Nifty does not go below ASC red line( at least 24962 must not be broken) and gets support around 24000 area then a move till 24180-24200 might come.
For any further up move it must come the wave drawn in blue color and final target can be up to 24390-24420 which has been acting as strong resistance during the week.
Possibility#2: If nifty breaks below 24962 and gets some support from Desc Gann fan line in Green then it can show small pull back touching any of the ASC Gann fan lines (green or red) and then if resistance is observed then we can see a good downfall in the form of wave drawn in red color which can go up to 23626. Move targets and time may not match perfectly but you can see the waves formation happening sooner or later.
Possibility#3: Nifty might remain in the triangle shown through out the day means muted market i.e. option premium decay day. Once nifty moves out of the triangle then you can see the wave formation but then targets might get changed with delay in moving out of the triangle.
Gap up strategy: If nifty opens gap up in the range of 24150-24200 then a short trade can be executed with 24222 as stop loss and then need to keep checking if it is following waves in blue or in red.
Note
It opened gap up and it hit the target of 21420 and went till 24450 and then it found resistance from the Gann fan line and came below it, now today we got good down move.
Tomorrow if it tries to move up there are multiple resistance lines and more likely it will fall again so sell on rise is the call.
On downside 2400 and then 23900 are the supports.
Note
Interestingly From 9th August Nifty followed the waves drawn in red almost making highs meeting timelines.
Now as per Gann line in RED is the support and if broken then 23910, 23800 and we might see even a spike till 23626 level where horizontal support exists which is an important Fib level.
On upper side there seems multiple resistance lines as of now so sell of rise seems to be call for next 1-2 days.
Note
It can be noticed that Gann lines are working as Magnet, when price is above a Gann line it acts as support and below it acts as resistance.
Today it kept struggling to cross the Gann line all day and it will be created once stock moves above LTH.
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