Short term trend remains up. NO sign of topping yet.
When you observe the trend from december 16, we can see that nifty rallies up for 7 to 10 days and then moves sideways for 5 to 8 days.
Current rally from 9448 has done 8 days now. So we are getting close to top at least for short term. Once confirmed we must get a grinding sideways pattern for 5 to 8 days.
Again if you see the sideways pattern in previous rally, nifty has corrected between 100 to 180 pts.
So once topped we should see a 100 to 180 pts decline
important support is at 9700 and 9640.
Wave labeling - earlier we had considered that we are still forming a X wave with internal structure as flat. Since wave b cannot retrace wave a by more than 120.2%, we have assumed that X wave got over at 9448. The current rise from 9448 , we are considering as a new wave up.
Technical analysis is based on price, volume, time. After friday's close, i dont think we had any technical indicators suggesting a rally on monday. Yesterday's event was unfortunate, especially for traders. I would note it as a black day for a trader. Only a trader will be effected on such days. As we do our analysis based on price + volume + time. SEBI should remember that trader is the one who brings volume and liquidity to market. Have you done anything to safeguard his position?
When you observe the trend from december 16, we can see that nifty rallies up for 7 to 10 days and then moves sideways for 5 to 8 days.
Current rally from 9448 has done 8 days now. So we are getting close to top at least for short term. Once confirmed we must get a grinding sideways pattern for 5 to 8 days.
Again if you see the sideways pattern in previous rally, nifty has corrected between 100 to 180 pts.
So once topped we should see a 100 to 180 pts decline
important support is at 9700 and 9640.
Wave labeling - earlier we had considered that we are still forming a X wave with internal structure as flat. Since wave b cannot retrace wave a by more than 120.2%, we have assumed that X wave got over at 9448. The current rise from 9448 , we are considering as a new wave up.
Technical analysis is based on price, volume, time. After friday's close, i dont think we had any technical indicators suggesting a rally on monday. Yesterday's event was unfortunate, especially for traders. I would note it as a black day for a trader. Only a trader will be effected on such days. As we do our analysis based on price + volume + time. SEBI should remember that trader is the one who brings volume and liquidity to market. Have you done anything to safeguard his position?
Comment:
Correction read 120.2% as 127.2%