Friday, June 29, 2012

Banknifty - Elliott Wave Analysis

Breakout! We have got it finally. We have been labeling I - II / [1] - [2] / (1) - (2) in our previous posts, and hopefully we are now on to the dynamic third wave. This should take prices much higher from current levels, and since we are expecting a third wave, intraday trades can buy the intraday dips (3 wave contra trend moves) to enter longs. I personally would avoid any type of shorts when we are in third wave up. On the daily chart attached below, the momentum indicators are showing possible acceleration in the price movement, above 10385 prices should really accelerate. But as in life the best way to live longer is protect yourself amply before taking any risks, so STOPLOSS must be in place!
We are getting a hook on MACD, support at 50 levels on both RSI and STS. We have a clear 3 wave move preceding our current rise form the 8995 levels. All this suggests that we have a nice up move on cards, and we should sit it out by properly managing the trade!

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