NIFTY Bank/NIFTY50...Bulls take a deep breath!
Hello Traders,
by exceeding to new ATH`S with most of the Indexes, today was time for „Cash into the pocket“ for traders. They sold broadly the market, specially by observing the No of traded contracts at NIFTY50, to my view (92.019 Contrats), the Volume was also high at 6.9m (Jan Contract)!
Most of the Major Indexes are showing reversal candlestick-pattern, as there is NIFTY50/200/500 (Shooting Star and bearish Engulfing), SENSEX and NIFTY Bank (Dark-cloud-cover). The only Index which is showing sign of strength is NIFTY IT which lead the bullride as of the last days. AND, as I wrote before, the USDINR is on it`s way to build a bottom, where a first target get reached today. This pattern look (400 min chart) is either a wave c or a fresh started impulsiv one!
RSI at NB shows clear sign that a first impulsive move or a wave c has endet today or is close to do so. I have paint a trendchannel (blue) at chart. If price will exceed the upper boundaryline (blue), the odds do increase that a wave (3) is on the run, which isn`t done already, may some up-down sequences are still need to complete.
A clear pullback into the channel will favor the odds for a wave c! The Gap-up by yesterdays trading is may a breakaway-gap.
I too have labbel the chart but it is not clear right now if this is the correct count (may an a-b-c is the other possibility). Shortterm the important level is the wave (2), blue low at 25232.80!
A quick look at NIFTY 50 show the weakness by the last two sessions with the reversal pattern at top I have described above. By yesterdays session price have reached the upper boundaryline of the red dotted trendchannel, where prices have shown a clear reaction. Today the open gap was closed and price may trend to the lower blue trendline or to the grey dotted line below, where a wave 4 of lesser degree is possibly placed.
As long as 10404.65 keep intact the trend is to the upside.
(Look chart below for NIFTY50)
Have a great day.........
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!
by exceeding to new ATH`S with most of the Indexes, today was time for „Cash into the pocket“ for traders. They sold broadly the market, specially by observing the No of traded contracts at NIFTY50, to my view (92.019 Contrats), the Volume was also high at 6.9m (Jan Contract)!
Most of the Major Indexes are showing reversal candlestick-pattern, as there is NIFTY50/200/500 (Shooting Star and bearish Engulfing), SENSEX and NIFTY Bank (Dark-cloud-cover). The only Index which is showing sign of strength is NIFTY IT which lead the bullride as of the last days. AND, as I wrote before, the USDINR is on it`s way to build a bottom, where a first target get reached today. This pattern look (400 min chart) is either a wave c or a fresh started impulsiv one!
RSI at NB shows clear sign that a first impulsive move or a wave c has endet today or is close to do so. I have paint a trendchannel (blue) at chart. If price will exceed the upper boundaryline (blue), the odds do increase that a wave (3) is on the run, which isn`t done already, may some up-down sequences are still need to complete.
A clear pullback into the channel will favor the odds for a wave c! The Gap-up by yesterdays trading is may a breakaway-gap.
I too have labbel the chart but it is not clear right now if this is the correct count (may an a-b-c is the other possibility). Shortterm the important level is the wave (2), blue low at 25232.80!
A quick look at NIFTY 50 show the weakness by the last two sessions with the reversal pattern at top I have described above. By yesterdays session price have reached the upper boundaryline of the red dotted trendchannel, where prices have shown a clear reaction. Today the open gap was closed and price may trend to the lower blue trendline or to the grey dotted line below, where a wave 4 of lesser degree is possibly placed.
As long as 10404.65 keep intact the trend is to the upside.
(Look chart below for NIFTY50)
Have a great day.........
ruebennase
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!