Nifty opened Gap UP on Friday and
bounced sharply above 8350 within an hour and traded with strength throughout
the day to register the high of 8410. Nifty closed 111 point up at 8395 end of
the day. Let us see what charts are suggesting.
This is 15 minutes time bar
chart of Nifty showing bounce after 7963.
In this move it seems,
·
Wave from 7963 to 8364 which is impulsive move
can be taken as wave A or 1
·
Wave from 8364 to 8144 which is corrective move
can be taken as wave B or 2
·
There is a start of next impulse from 8148 and
it can be C or 3 that would be confirmed later. This wave C or 3
projected more than 61% till now and is still within inner wave 3 which
indicates more upside as wave 4 and 5 is still pending. 100% for this impulse
is placed at 8548 which seems possible seeing present set up on charts.
Move till wave 2 of (3 or C) is
clear and we need to see next wave 3 closely (marked by black box) of chart 1.
This is 5 minutes time bar
chart of Nifty showing bounce after 8248 which I am assuming as start of wave 3
of (C
or 3).
It seems inner wave I, ii, iii
and iv of (3) are completed and v of (3) is in process as shown on chart. It
seems wave (iv) completed as last upside bounce from 8375 looks like impulsive.
Or wave ‘iv’ can complete somewhere between 23%-38% retracement of “iii” if it
is not completed. 23% already completed.
If I am right at identifying
then wave (v) can show minimum 38%-61% projection which is placed at 8437 and
8476 respectively.
Conclusion:
Current set up on chart is suggesting
the possibilities of more upside. Any shorts at these levels should be avoided
and stop loss for the existing longs should be 8345 spot now.
CLICK HERE.. To learn Elliott Wave Analysis and its Practical Application in real Trading.
This EW
analysis report of Nifty is a part of 02 months FREE service for my book
subscribers.
0 comments:
Post a Comment