BankNifty - 900 Points Bounce - Leading Diagonal Scenario ?As we discussed on 1st Dec 2024, an upside move towards the recent high was anticipated. If the recent high holds...then what?
I'm glad to see we got a strong 900+ points bounce in Bank Nifty Index since Monday, 2nd Dec 2024. This aligns exactly with our weekend discussion.
Elliott Wave Analysis (Advanced School of Thought)
This could be a classic market scenario to include in my upcoming book. If the index halts below 52760, we might be witnessing a Leading Diagonal Scenario:
From the highs of 52760's
Referencing the bible book of Elliott Wave by Frost & Prechter (Page 41, Figure 1-21):
Snapshot captured at 11;49 am / 3rd Dec 2024
Leading Diagonals occur at the start of a decline.
They can retrace up to 99.99% but cannot exceed 100%, which would be 52760 in this case.
Current Scenario:
A Leading Diagonal appears to be forming from the highs of 52760.
It has retraced until today's high of 52748.
Can This Be a Double Top and Leading Diagonal Scenario at 52760?
Line in the Sand (Stop Loss):
The index cannot cross above 52760. If it does, the pattern is invalidated, and we’ll need to reassess.
Market Whispers! ...Can You Hear Them?
Regards,
WaveTalks
Abhishek
