BankNifty - Geometry in Motion: Unfolding of the Right ShoulderDisclaimer:
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WaveTalks - Market Whispers: Can you hear them?
Market Commentary
Following the update from 4th January 2024, the market has witnessed an extraordinary sequence, perfectly aligning with the anticipated Head & Shoulder pattern. The index precisely hit the resistance zone between 48,350 and 48,450, peaking at 48,381.95, before experiencing a significant drop to 47,010.80, a fall of approximately 1371 points. This movement confirmed the formation of the Right Shoulder in the pattern.
Last Idea - 4th January 2024
Alternate Interior Angles
As we delve into the geometrical aspects of market analysis, let's remember: Alternate Interior Angles on opposite sides of a transversal line are always equal. This mathematical principle is a reminder of the upcoming board exams in February-March 2024. Best of luck to all the students who will be appearing for their exams. Mathematics has always been fascinating, and its principles are even applicable in market analysis.
In the context of Elliott Wave Analysis, the market's movements have been akin to a well-orchestrated dance.
10th January 2024
We observed a remarkable bounce from 47,010.80 to 47,662.10, marked as "O A" on the chart at a 72-degree angle. This bounce mirrored our predictions.
11th January 2024
The index witnessed a sharp decline during the end of the day session, reaching lows of 47,237 but staying above the critical zone of 47,150-47,200. Post this dip, the index rebounded, hitting all the projected upper targets on 12th January:
1. 47,550
2. 47,700
3. 47,850
12th January 2024
Magic of Neckline Extension.
The extended rising neckline shown in orange colour dotted line acted as resistance, with the index halting just below it at 47,873, leading to a sharp decline to an intraday low of 47,600 (precisely 47,602), before surging upwards again towards end of the session.
What's Next?
Looking forward, if the index remains below the rising neckline of 47,873 and breaks below the minor support zone of 47,600-47,575, we might see a continuation of the downward trajectory. The following targets are in view:
1. Target 2: 47,400
2. Target 3: 47,235
3. Target 4: 46,900-47,000
4. Target 5: More speculative, but if the index falls below 46,800 and sustains it, a drop to the 46,450-46,550 zone is possible.
5. The 46,800-46,900 range is a critical phase to observe and possibly stay on the sidelines.
As we embrace the festive spirit of Makar Sankranti and bid farewell to winter, I extend my warmest wishes for the festival. Keep an ear out for the whispers of the market and stay tuned for further updates.
WaveTalks
Market Whispers: Can you hear them?
