Hello Traders,
Yesterday NIFTY 50 touched the 1.618 FibExt of the move down from 10343.6 and completet a three move pattern (a-b-c) to the downside, which is clearly corrective. Today NIFTY open trading with a gap up to 10326.0 and remains it open by closing bell. As long as this gap remains open the focuse is to the upside. Todays a/d-Ratio is at 1.38 (29/21) while it was yesterday at 1.429! The gap from Nov 16-17 remains open too.
Observing the move from 10094.20 (Nov.15) to 10358.7 is to my view clearly corrective and a three-move pattern.
That day NIFTY started with an a/d-Ratio of 4 at session opening and shows weakening momentum for the rest of the session, by closing this day at 1.68. Of course the second strongest within the last 4 tradingsessions, but notice that often the strongest a/d-Ratios occurs in corrective moves. Also Gap`s to the upside(in this case) occurs in corrective markets, as they did from Aug. 11- Sept.19 in a wave c move, which is part of a corrective one.
While it is possible to count the move from 10094.20-10358.7 as a impulsive pattern we have different options for trading within the next sessions.
Either this running move is part of a wave 4 move (Minor) and it develops as a flat or a triangle pattern, or we have a start of a wave ((3)) and we may have finished wave 1 of ((iii))!
By playing the card of a wave ((iii)) start, gaps often occurs in an uptrending market at the start of a wave 3. So the posssibility is given for this case. But I like to see more gaps to the upside and more strenghten days for this idea.
For a triangle correction, which is a sideways move the pattern has to develops more and give me more fact`s to this pattern.
So, as long as the gap from the closing at Nov. 16 at 10208.9 -Nov. 17 at 10327.60 remains open the foscus is to the upside. If NIFTY50 exceed toe level @ 10490.45 a common target is around 10643.58 area.
Have agreat day...
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!
Yesterday NIFTY 50 touched the 1.618 FibExt of the move down from 10343.6 and completet a three move pattern (a-b-c) to the downside, which is clearly corrective. Today NIFTY open trading with a gap up to 10326.0 and remains it open by closing bell. As long as this gap remains open the focuse is to the upside. Todays a/d-Ratio is at 1.38 (29/21) while it was yesterday at 1.429! The gap from Nov 16-17 remains open too.
Observing the move from 10094.20 (Nov.15) to 10358.7 is to my view clearly corrective and a three-move pattern.
That day NIFTY started with an a/d-Ratio of 4 at session opening and shows weakening momentum for the rest of the session, by closing this day at 1.68. Of course the second strongest within the last 4 tradingsessions, but notice that often the strongest a/d-Ratios occurs in corrective moves. Also Gap`s to the upside(in this case) occurs in corrective markets, as they did from Aug. 11- Sept.19 in a wave c move, which is part of a corrective one.
While it is possible to count the move from 10094.20-10358.7 as a impulsive pattern we have different options for trading within the next sessions.
Either this running move is part of a wave 4 move (Minor) and it develops as a flat or a triangle pattern, or we have a start of a wave ((3)) and we may have finished wave 1 of ((iii))!
By playing the card of a wave ((iii)) start, gaps often occurs in an uptrending market at the start of a wave 3. So the posssibility is given for this case. But I like to see more gaps to the upside and more strenghten days for this idea.
For a triangle correction, which is a sideways move the pattern has to develops more and give me more fact`s to this pattern.
So, as long as the gap from the closing at Nov. 16 at 10208.9 -Nov. 17 at 10327.60 remains open the foscus is to the upside. If NIFTY50 exceed toe level @ 10490.45 a common target is around 10643.58 area.
Have agreat day...
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!