Nifty is not giving up any ground, though we are getting resisted at the higher boundary of the trading range, we are not breaking down either. We could say that we are forming a flag like structure on the charts, with the preceding move expected to continue once this consolidation is over. That's classical technical analysis, on the other hand EWP is giving us much higher targets, if we go by the counts mentioned on the chart. The invalidation level of 4900 is of course crucial, and it will be critical what path the market takes to reach that level if at all we break the support zone in and around 5000. The weekly chart is offering an interesting picture, which I felt was worth sahring.
We have already fallen in a triple zigzag pattern in wave (A) of [IV], now we may rise in a zigzag pattern in wave (B) of [IV], with target area of 5800 - 6000, as per the channeling technique. On a bigger fractal, in wave [IV] we might be forming a flat, so once this 3 wave up move is done, we may fall in an impulsive manner in wave (C) of [IV]. But it is a far cry from here, we need to concentrate on the pattern at hand, and we will be tracking the pattern with the help of daily and hourly charts. This weekly chart showed the possibility of an interesting pattern developing, so I shared it.
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