The chart above is a 4 hour chart for Banknifty, and looking at it this morning I could not help but notice a possibility of another leg down before we embark on the wave III. I looks like a zigzag correction, and may take prices to the range of 9900-9675. Also we cannot see any positive divergence on either RSI, STS or MACD. Same is the case with Nifty, again we may test the 5000-4900 range, before turning back up. But there are some critical resistances which if taken out may result in the up move continuing from current levels. The levels are 10710 on Banknifty and 5260 for Nifty. As long as we stay below these levels there is a chance of another leg down to the above mentioned ranges, on both Banknifty and Nifty.
Dear Aniruddha,
ReplyDeleteAlt lable ashe paha ...
DZZ from 4770, in its 2nd ZZ UP from 5033
Check if move up from 5033 looks like an impulse with sw1, sw3 NOT EXTENDED & sw5 in play UP from 5150 , likely to do an EXTENSION (1.382 / 1.618 x sw1) as:-
y.a.1 5033 5150 117
y.a.2 5150 5078 -72 -62%
y.a.3 5078 5218 140 120%
y.a.4 5218 5154 -64 -46%
y.a.5 5154 5233 79 56% ** in play
Tgting 5315-5343, and then we go down in a 3wave retrace
cheers
Dear Shriram,
DeleteI kindly request you to send a chart marked with your labels, or alternately you can use any chart from my blog mark your labels on it and then send me the chart or link.
Regards
Aniruddha
Dear Aniruddha
ReplyDeleteyour assumption of 5260 level coincides with inverted Head&Shoulder breakout point. if this breakout occures, Nifty may move up by 212 points. let us see the market move tomorrow
thanks and regards
Well I am not that good at spotting classical chart patterns that work consistently, also the reward to risk ratio is not to my liking, most of the times. Anyways classical or EWP or TA or anything what matters is we catch the direction right. On that note we both have same opinion.
DeleteRegards
Aniruddha