Hi Friends,
Ever since Nifty made its Low at 4770 on 4th June we have been mentioning that it is in its C leg of the Minor Degree Wave B Up. And till date its moving as per or projected path. Earlier we were thinking it to develop as Impulse. However, after the 1st leg was over at 5348 we realized that C might be developing as an Ending Diagonal a Terminal Structure. And Ending Diagonal would rather confirm that Nifty is indeed moving in C of B up. Well as of now we still don't have sufficient evidence for Ending Diagonal. But Once Nifty Completes the 3rd leg we will have that confirmation.
Currently Nifty looks to be in 3rd leg of the Ending Diagonal. Of which 'a' looks complete at 5449. We can clearly see a 5 Wave Rally from 5032-5449. What may follow is a 3 Wave Decline in 'b' leg from 5449 top of 'a'. Well this 'b' looks complete at 5312 today's low; as Hourly Charts show a Positive Divergence in RSI and the Fall also satisfies Kennedy's Channeling Techniques Rules. So Nifty may Head up from here in its 'c' leg of the 3rd Wave of Diagonal. However, one shall wait for confirmation by channel breakout above 5360. And also keep room for some more decline to 5289 a 38.2% Retracement of 'a' leg or Gap Area at 5245.
On pure Elliott basis a=c gives target of 5728 for the 3rd leg of the Diagonal. However, 'c' may Fall Short and achieve only 5610 or 5686. In best circumstances Nifty may go as High as 5932 in its 5th leg of the Diagonal till 5th Nov. However, we are betting for a conservative target of 5738 for the Diagonal.
The above view will hold true only in case Nifty holds above 5221. Else we would look for alternate Wave Count of Triangle in B.
So lets wait & watch..
Thanks & Regards,
Harsh Dixit.
Ever since Nifty made its Low at 4770 on 4th June we have been mentioning that it is in its C leg of the Minor Degree Wave B Up. And till date its moving as per or projected path. Earlier we were thinking it to develop as Impulse. However, after the 1st leg was over at 5348 we realized that C might be developing as an Ending Diagonal a Terminal Structure. And Ending Diagonal would rather confirm that Nifty is indeed moving in C of B up. Well as of now we still don't have sufficient evidence for Ending Diagonal. But Once Nifty Completes the 3rd leg we will have that confirmation.
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| NIFTY-ENDING DIAGONAL |
Currently Nifty looks to be in 3rd leg of the Ending Diagonal. Of which 'a' looks complete at 5449. We can clearly see a 5 Wave Rally from 5032-5449. What may follow is a 3 Wave Decline in 'b' leg from 5449 top of 'a'. Well this 'b' looks complete at 5312 today's low; as Hourly Charts show a Positive Divergence in RSI and the Fall also satisfies Kennedy's Channeling Techniques Rules. So Nifty may Head up from here in its 'c' leg of the 3rd Wave of Diagonal. However, one shall wait for confirmation by channel breakout above 5360. And also keep room for some more decline to 5289 a 38.2% Retracement of 'a' leg or Gap Area at 5245.
On pure Elliott basis a=c gives target of 5728 for the 3rd leg of the Diagonal. However, 'c' may Fall Short and achieve only 5610 or 5686. In best circumstances Nifty may go as High as 5932 in its 5th leg of the Diagonal till 5th Nov. However, we are betting for a conservative target of 5738 for the Diagonal.
The above view will hold true only in case Nifty holds above 5221. Else we would look for alternate Wave Count of Triangle in B.
So lets wait & watch..
Thanks & Regards,
Harsh Dixit.
It looks nifty will see 5241 spot tomorrow session.
ReplyDeleteIf it closes below 5241 on weekly basis. then we can see 5130 next week.