Nifty - Elliott Wave Analysis

Elliott Wave Analysis is based on pattern recognition, and then following a set of well defined rules to trade those patterns. Corrective patterns are basically 3 wave structures, but are seldom as simple as 3 waves. they take on myriad of shapes and often extend in duration and complication. We are dealing with one such corrective wave. and after today's price action we can spot a contracting triangle in wave [b]/[x] of wave II. Triangle are continuation patterns, but under EWT they are the patterns which precede last leg of any movement. In present case this triangle may be followed by a sharp fall, which will be wave [c]/[y] of wave II. And once this sharp fall in done, we may see end to this wave II. According to above count the target for wave [c]/[y] may come around the 4950 - 4920 zone.Watch for support around 5135 - 5100 - 4950 - 4920 levels.