Wednesday, July 25, 2012

Nifty - Elliott Wave Analysis

Hourly Chart
As shown in the daily chart below I am able to count the rise from the lows of 4770.45 as a 3 wave move. The detailed wave structure is presented in the hourly chart above. According to it we are forming a 1-2/1-2 structure, and presently correcting the second wave [1]? in the 1-2/1-2 structure with wave [2]?. The question marks suggests that it is my alternate count for now, the reason being the inordinate depth of wave [2], though we have not yet violated any of the EWP rules, so till the time prices remain above 5042.50 the up move is possible, below it we get a confirmation that the rise was indeed a corrective 3 wave rally, and we should see much lower prices in coming days. If we cross below the 5075-5042.50 band, we are almost sure to see the 5000-4900 band, where I am expecting the prices should find some support, if my triangle pattern plays out. Else we will need to break below the low of proposed low of wave A to negate or at least postpone the possibility of the triangle.
Daily Chart

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