Prices have been meandering between 5000 - 5150. The price movements can be labelled in many ways, just a couple of them are shown here. There are a host of support levels between the range of 5050 - 4990. So far as we reverse back up and hold above the lower boundary of this support zone, we are good for a dynamic wave III. Even if we break down from this range, the last hope is 4900, but below this level, I would be skeptical of this expected up move. The STS is oversold, RSI is sporting a positive divergence, MACD may stage a ZLR, but all this is based on the notion that we are going up, its always better to wait for the market to tip its hand and then jump on the train. I suggest waiting for those who are already in at lower levels, and for fresh positions, one can buy in this zone of 5050 - 4990, with 4900 as a SL for positional traders, and 4990 - 80 for short term market timers.
Hi Aniruddha,
ReplyDeleteTaking 5190 as 'b' of "II" would not be logical I think as 5124-5015 = 109 'a'
b = 1.382*109 = 150 points so it comes to 5165..
So I would rather take 5190 as B of the 2nd of "III"
What you think?
That is one my alternate labels, you can see it on the chart with a "?" mark behind the labels. But both the possibilities are equally likely, when wave [a] is sharp, [b] waves can take inordinate time and space, lets see what exactly pans out. The crux of the matter is for short term market timers keeping a small SL is in order. :)
DeleteHI ANIRUDDHA ,
ReplyDeleteONE OF UR COUNT SUGGEST THAT WAVE "b" HAS MORE THAN 138.2% OF "a" THUS WAVE "c" WILL NEVER RETRACE ALL OF "b". AS GNENN NEELY SUGGEST IN HIS BOOK.
SO IT WILL BE ALL TOGETHER A RUNNING CORRECTION & WAVE III WILL BE THEN EXTENDED ONE .THIS SEEMS TO BE LOGICAL COUNT AS TODAY ACTION .
CAN U PLEASE HAVE A OPINION ON MY LOGIC
@Amar Sutar
ReplyDeleteWell I have read glen neely's book. But I prefer the original work of Elliott and the additions done to it by prechter. Such running corrections are rare but not totally ruled out. So I am open for various possibilities and will use my trading plan to trade the markets and my Elliott wave count as a backdrop for my trades.