Hi Friends,
In our last post we mentioned to be cautious around 5738-5756. As per previous post we were expecting this Rally in 3rd wave to End around 5738-5756. And were waiting for the missing (v)th of 5th wave to to take short trade. But after the Friday's action it seems that 5th wave under this 3rd wave is developing as an extension impulse and can shoot up to 5932 or even 6040 till Oct 24th. Sustained move above the trend channel around 5780 will confirm that 5th wave is developing as an extension impulse and will also confirm that its the Extended 3rd wave on Nifty.
Generally 3rd wave is the fastest and longest among wave 1-3-5. Similar kind of move was witnessed in Jan 2012 where Bears got completely wiped out in 3rd wave of the wave 'A' of this corrective up move. There are lots of shorts active in the system and Nifty will keep moving higher until all these shorts are totally wiped out.
Experts say that never try to predict the end of 3rd wave. So it is better to keep trailing the protective stops to ride this up move.
Thanks & Regards,
Harsh Dixit.
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| NIFTY |
In our last post we mentioned to be cautious around 5738-5756. As per previous post we were expecting this Rally in 3rd wave to End around 5738-5756. And were waiting for the missing (v)th of 5th wave to to take short trade. But after the Friday's action it seems that 5th wave under this 3rd wave is developing as an extension impulse and can shoot up to 5932 or even 6040 till Oct 24th. Sustained move above the trend channel around 5780 will confirm that 5th wave is developing as an extension impulse and will also confirm that its the Extended 3rd wave on Nifty.
Generally 3rd wave is the fastest and longest among wave 1-3-5. Similar kind of move was witnessed in Jan 2012 where Bears got completely wiped out in 3rd wave of the wave 'A' of this corrective up move. There are lots of shorts active in the system and Nifty will keep moving higher until all these shorts are totally wiped out.
Experts say that never try to predict the end of 3rd wave. So it is better to keep trailing the protective stops to ride this up move.
Thanks & Regards,
Harsh Dixit.
Hi Friends,
ReplyDeleteFall below 5691 will be Initial sign of weakness. Drop below 5639 will only be evidence for the Down move towards 5520-5450..
So just wait n watch..
Thanks & Regards,
Harsh Dixit.
Hi Friends,
ReplyDeleteAs a trader we need to be flexible.. My opinion has not yet changed.. But there are two possibilities coming up on Nifty. Either 5th wave Extension or An Ending Diagonal in c of 3rd wave.. Which of these will come true that only time will tell us.. So below 5691 Initial sign of weakness confirmation below 5639.. Abv 5756-5780 5th wave will extend.. So keep sl of 5639 for longs.. and 5780 for shorts.. I I will short on Pull-back if 5639 breaks.. Currently holding longs...
Thanks & Regards,
Harsh Dixit.