Hello Traders,
NIFTY50 popped to 11694 on September 23. This move could be wave ((1)) of a larger advance or it is a wave „3“ and the running correction since a wave „4“ of lesser degree. The correction retraced a bit more as a 0.382 Fibonacci of the advance, which is to shallow and make the odds high for a more complex structure, as a W-X-Y-X²Z is, for example. A common target range for such a pattern would be at or around the 0.618 Fibonacci @ 11062 in the coming hours and days.
As you will observe, I have left a hint for a truncated wave „5“ of „5“ of „c“ at the chart. This pattern is a rare one and implies strong buying pressure ahead, as to observe with the move on September 20!
An alternate interpretation of the chart is a wave (iv) what makes the pattern an „EDT“, but the shape of it is not that one I`d like to see. So I think it is a probability with lesser confidence.
One more alternate is a wave (b) ended at 11694, it retraces a 0.72 Fibonacci of the decline from 12103-10638.
The a/d-ratio as per the past second days was at 0.34 + 0.23, which is very bullish; the TRIN closed at 1.384, which is in contrast bearish! So, no message for me from these indicators and measurements.
A short-term bounce to the upper line of the channel, @ or around the 11480 area could be a wave
x² in a more complex structure.
A rise above the wave „x“ high @ 11600 area on a closing basis would alter the odds for a more ongoing decline.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!
NIFTY50 popped to 11694 on September 23. This move could be wave ((1)) of a larger advance or it is a wave „3“ and the running correction since a wave „4“ of lesser degree. The correction retraced a bit more as a 0.382 Fibonacci of the advance, which is to shallow and make the odds high for a more complex structure, as a W-X-Y-X²Z is, for example. A common target range for such a pattern would be at or around the 0.618 Fibonacci @ 11062 in the coming hours and days.
As you will observe, I have left a hint for a truncated wave „5“ of „5“ of „c“ at the chart. This pattern is a rare one and implies strong buying pressure ahead, as to observe with the move on September 20!
An alternate interpretation of the chart is a wave (iv) what makes the pattern an „EDT“, but the shape of it is not that one I`d like to see. So I think it is a probability with lesser confidence.
One more alternate is a wave (b) ended at 11694, it retraces a 0.72 Fibonacci of the decline from 12103-10638.
The a/d-ratio as per the past second days was at 0.34 + 0.23, which is very bullish; the TRIN closed at 1.384, which is in contrast bearish! So, no message for me from these indicators and measurements.
A short-term bounce to the upper line of the channel, @ or around the 11480 area could be a wave
x² in a more complex structure.
A rise above the wave „x“ high @ 11600 area on a closing basis would alter the odds for a more ongoing decline.
Have a great week....
ruebennase
Feel free to ask or comment.
Trading this analyze is at your own risk!