Below is the daily chart of Nifty; Quite colorful! As one can see I have tried to let my imagination run wild with those lines and colors. Ok done with coloring contest, let us see if we can infer some things from what the Nifty is tryin2show us or rather we seeing what we are tryin2convince ourselves to believe!
From the chart above we have;
- A broader range shaded in yellow
- A recent laborious rise in drawn in purple channel
- An assumption of a Wolfe Wave (at least I assume it might pan out that way).
I have already spoken about drifting too far from the MA’s and Divergences etc in this post, and I still stand by the same analysis. The upmove is showing signs of fatigue and now with the earnings seasons on, any surprise might get Nifty moving either side!
Bulls don’t have anything to worry about (other than slow frustrating moves upwards which rob the sheen out the rally) as long as the 5300/5250 is held on dips.
Hi manoj ji,
ReplyDeletemy knowledge is limited about wofle wave but i guess in wofle wave lower trend line has an upward slope.........as far as correction is concerned it is definitely round the corner.
sir,for study purpose a clarification--should we consider 5500 as point.6..if point 5 marked by you is executed..
ReplyDeletetks
raj
Renu Hi
ReplyDeleteYup it looks or rather feels like that the correction is round the corner.....but which corner??? so far its time off for BEARS...
For reference
http://wolfewave.com/
Cheers
Raj hi
ReplyDeleteOh my 5 points were just for wolfe wave thing...other than no other purpose...so about point 6...I wont be able to comment!
Cheers