- I have labeled the tentative EW count on the chart above. I feel we are close to wave [3] top. That is the most likely count at this stage.
- But there is a likelihood of a final dash to 6168-6188 band, where there is another confluence zone which might end the wave [3].
- RSI is showing a negative divergence, also we have a rising trend line which has offered good support to this up move. The only place where we have a breach of this TL is when we were forming wave (4) of [3] (that is typical of 4th waves). We may get another break of this rising TL during wave [4].
- This wave [4] may target the area of previous wave (4), that's just basic EW guidelines.
- This chart shows ROC indicator, which is also showing persistent negative divergence. This rising trend was supported by a rising TL, which can also be seen as a neckline for a HnS on ROC.
- The channel drawn is a slightly different, the lower channel boundary, should be breached to signal and end of wave [4], given that wave [3] is done, else the channel will have to be redrawn.
Sir
ReplyDeletewhy does ur 1 start from 4770
ideally it should be 5032
in all likelyhood u r presuming this to be a corrective rally?
Well,
Delete5630-4770 was a 3 wave move.
What pattern are you counting till 5032 I would like to know?
If this is not the start of a new multi-year bull market, we should at least see one more leg up to complete the 5 wave advance from 4770, which might be wave C of a corrective rally from 4530 levels.
But I would take it one leg at a time, and right now looking for a correction in wave [4].
Regards
Aniruddha