Nifty50 moved in the direction that I mentioned in my previous blog. It looks like we hit a truncated 5th wave at the top to make wave 3 early, on higher time frame. Here are charts in different time frames,
NIFTY 50 DAILY CHART ANALYSIS
In Nifty50 daily chart the price is moving higher to make PURPLE 1 wave, this will be the first wave of 5 waves towards a new all time high.
In this we have 5 waves, because waves are fractal in nature.
Here is a 1H chart of Nifty50
We are looking at 5 waves towards completion of wave 1. Here it seems we have finished an early wave 3, I can see weekly resistance beyond this therefore a pull back is required to break these levels.
Wave 4 pull back in ABC format is good even for FIIs at this juncture.
Here is a 5 min chart of Nifty 50:
Overall the structure sounds little fishy, Diwali is round the corner and this pull back doesnt make sense. If we are going down in ABC format then wave A is still in progression. More on this later. Currently looking at price to go higher to complete wave 4 (WHITE) and then down again.
Comments