Friday, June 01, 2012

Nifty - Elliott Wave Analysis

Nifty may not have completed the triple zigzag correction. The labelling shown on the chart shows that we might be in wave [c] of Z of {II}. The area of previous wave IV of {I} is highlighted on the chart above. We are already near the lower level of that range. The daily chart below shows detailed count for the last leg of this correction.

We may be in wave (5) of [c] of Z of {II}, once this wave (5) is done we may embark on the much awaited upmove in wave {III}. The possible range for this wave (5) comes in the range of 4700 - 4560. This wave is a good trading opportunity in itself. But one has to be on their toes once we reach 4700 levels. After that we are in hot territory for a reversal pattern. So once 4700 is reached partial profit bookig is in order. STS has turned down from overbought levels, we may see prices accelerating on the downside.

The recent 3 wave rise has proved corrective, and what follows a corrective move is an impulse move. So we may be falling in an impulse move and prices are expected to reach the 4700 - 4560 zone. At this stage what we can do is to just count the waves down and look for waning momentum on the downside.

This may be the period where the investors who are suffering from a long drawn frsutration since 2008 and especially severe since the market top in 2010, may be about to end, in coming days. But we cannot preempt the reversal just yet, we will need much confirmation for a reversal, and the good news is we will get ample time to get in after confirming the end to this corrective pattern and beginning of the new up move.

This is a bold attempt, use this as a frame of reference to help you keep the price action in proper perspective. As I have repeatedly stated to trade you have to have a mechanical system and filter its signals using a bigger frame of reference.


  1. Where were you for so many days, your FB account is also got deactivated Sir ?

    1. Well I am here only, got fed up of social networking sites, so deactivated all my accounts, keeping in touch with serious traders through this blog. Nice to see you though, keep in touch :)


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