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In search of the next bottom, we look for five-wave declines to complete. Prices have been falling inside a channel and a breakout would put us in the price territory of the previous ivth wave near 16404 to the gap zone near 16484. But what if we do not breakout and keep falling below 16000 we could see a free fall with multiple extensions on the downside....

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Starting December banking stocks are leading from the front, and there is a change in trend. Banks surpassed yesterdays high ahead of Nifty and the Rohits Momentum on hourly had a clear buy signal that did not whipsaw like it did on Nifty. Banks should continue to outperform the Nifty in the days weeks ahead and for 2022 as a whole in my view.

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Nifty Hourly charts and the Rohits Momentum now share a positive bullish divergence and one more buy signal afterward. Minor wave ii? Everytime you do not get a V shaped recovery but price action is a process that you have to follow with all the arsenals you have in Technical Analysis.

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The hourly Rohits momentum indicator gave abuy signal that failed and flipped back to sell, which allows for risk management by traders but that does not change the Elliott Wave view that we are in wave II. That requires deeper thinking and observations. The only alternate is wave 5 was truncated and the recent top ended an 18-month bull phase. Time will tell...

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The signal is the first sign, wave counts add weight to it and a higher time frame chart like the daily chart needs to confirm it. That is the process we follow and this was a start at 1.00pm today. Lets see the follow up. Position sizing in play

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The number of classic relationships that I have to debunk just to be on the right side and convince the world is just overboard. And the charts are as straightforward as they can be. So here goes stupidity. Rising bond yields are not dollar bullish, at least not in the time frame of this chart. So when bond yields rise then the dollar actually falls. Yes...

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The two Indices Dow and Nifty have moved in opposite directions for months Now or most of 2021 and that pattern continues. So it comes no surprise to me that we are up and the Dow is down on this chart.

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Nifty either started a series of bullish impulses higher or as the red alternate wave counts show we have one final leg down in Z. We are in late stages of this corrective process and Z can sometimes truncate at a higher low as well. After that the selling is mostly over and we head straight up. A breakout above 17300 means we have taken off to the moon.

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The most recent bounce is not an impulsive move so maybe it is an x wave and that means one more a-b-c down can follow and waves a and b are already done. Next week should see wave c complete into the year-end. but will it make new lows? The Nifty Elliott wave update with weekly charts and wave counts is already online on indiacharts.com, enjoy my Truth about the Markets

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A double bottom below the 17000 mark it is, pending some price confirmation. If you think that the most recent decline is a 5 waves down and more selling is due then this alternate count will get vindicated when Nifty moves above 17490. That is the final confirmation that we have a bottom in place for the time being. Then we can think about the bullish alternate...

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A breakout from the falling channel and above the 40hema at 17337 would be a good sign that the current decline from 18210 is over and will raise the odds that the 6 week correction also ended. Then its back to the bull market that already was unless proven otherwise.

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Some people may call this a bear market but it is early days. w-x-y is a complex correction where each wave is 3 waves. The alternate is a-b-c- which is 3-3-5, a flat except that flats are more sideways in structure. In either case we are near the lower end of a falling channel that needs to be watched for an end point to the correction along with the 18-20...

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M&M stock formed a 5 wave advance but as prices go past the high of 895. Then we get an extension. A situation where 5 waves can convert into 9 waves and that means adding 4 more waves to the rally. This means recalibrating the wave count and coming up with Fibonacci extensions to project the size of the extended wave on the upside. That is where M&M is this...

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In a world that remains confused looking at US market volatility and news flow every day about problems we are missing what the market is doing today. This nifty chart shows a pullback in wave ii that took support on the rising trendline after a 61.8% retracement. Shouldn't this work? Or should we get scared about our analysis because today the Dow is down...

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After a 5 wave advance the Nifty PSE index , is making a higher high. The implications are that the move upwards is not over and extending into multiple legs. 13 waves or 17 waves only time will tell. We know that it is not over and that is a good starting point.

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We started to write about the ending pattern ni the Nikkei in late July, but if time was a science we could have said it will take another month to complete. The pattern did not change only the point where wave e ends did. We now have a breakout and a strong rally for Japanese stocks as the next impulsive rally begins. Japan longer term is a turnaround market in...

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After 2 failures to hold on to the upward trend and corrective rallies, it is clear that this bull has no bones. The dollar index has been in a bear market since 2018 and each attempted rally has failed. This time is no different. The dollar bulls are about to make the most classic giving up of their opinion and they will do it all at once. It will be a meltdown...

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The decline in NIfty inside a channel in perfect A-B-C was a signal that we were not falling impulsively. In other words, the larger trend is not down but still up. This small piece of evidence goes a long way in taking decisions amid all the noise in markets these days. It clears the head and offers high probability outcomes. It is very basic to Elliott Wave...