Tuesday, June 05, 2012

Nifty - Elliott Wave Analysis

Once again momentum indicators gave us warning about what to expect from prices. No clear positive divergence on hourly chart yet, prices getting resisted at the 5 DEMA, STS on hourly chart reaching overbought zone and turning down, and a hidden negative divergence on both STS and RSI, all this suggested that we may retest the recent bottom once again, or if at all the down move is over in the short term, we may get deep retracement of yesterday's rally. I feel prices may retest the lows once again, also the internal wave structure is not clear enough to give us confidence, so in such cases, keep your stop losses in place and wait for the pattern to complete, and if stopped out or booked out, look for bounces such as yesterday to enter again on the short side, till a clear positive divergence emerges on the hourly chart first.
Have patience!

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