Friday, May 04, 2012

Nifty - Elliott Wave Analysis

5161 gone on Nifty, now next critical support level in around 5135. Below 5135 we may see further fall towards 4950 levels. But give prices some room around this 5135 level. Look for corrective bounce to enter the down trend. Shorting on the break down of 5135 may get you caught in a "bear trap". This is not guaranteed but its better to be safe than sorry. 5135 is as important short term support level. On the technical side, ADX is in the 30 - 20 range on daily scale, so probability of a trending move is there. Those who shorted at 5280 levels, should trail there stops and keep part booking at important levels. Reinstate your partially booked positions on corrective (3 wave) bounces, in the opposite direction of the trend.

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