IXIC, You may find this analysis helpful in future !
Diupdate
Is this another bear market rally? or just we are at the early stages of new massive bull run?
Since hitting 10565.14 low ( which was in 0.5 _ 0.618 Retracement zone of previous major rally from pandemic low to ATH ) , IXIC has started a promising rally for bulls. Is this low market's bottom? It might be, but lets review a contradictory yet valid scenario :
First of all I should emphasize this proposed scenario is not a fact and is just a possibility . I have to repeat again : " when we are in world of Elliott waves we are dealing with possibilities not certainties ".
As shown on the chart, Previous major decline from 16212.23 to 10565.14 can be labeled as impulsive 5 legs down going wave. Normally, we have a counter trend correction after an impulsive wave therefore, recent rally may be just a big counter trend correction bear market rally. Why I used normally ? Since there are some alternatives for this scenario which are beyond scope of this publication . Please remember : " Possibility vs Certainty "
Mentioned five legs down going impulsive wave can be labeled as wave 1 or A which implies for a counter trend correction as wave 2 or B. Strong resistance zone formed by 0.5 and 0.618 Retracement levels has been shown on the chart. This zone is also a valid supply/demand zone. In addition, my private Gann Box analysis confirms this zone as a strong resistance ( I excluded Gann Box from the chart to keep it as clean as possible).
200, 100 and 50 weeks moving averages have been also shown on the chart. As we see, 200 weeks moving average which supported the market at pandemic low was market savior one more time at last major low. 100 and 50 weeks MA s are waiting for the index at our proposed resistance zone. This makes our resistance zone even stronger.
If true, Worst has yet to come as wave 3 or C. If we are going to see wave 3 then may god bless the market.
Please note this is not to frighten anyone especially bulls or giving hope to bears. This is just an analysis which shows a valid possible scenario and I can strongly recommend you to keep this scenario in mind.
I Hope this analysis to be helpful and wish you all the best.
Since hitting 10565.14 low ( which was in 0.5 _ 0.618 Retracement zone of previous major rally from pandemic low to ATH ) , IXIC has started a promising rally for bulls. Is this low market's bottom? It might be, but lets review a contradictory yet valid scenario :
First of all I should emphasize this proposed scenario is not a fact and is just a possibility . I have to repeat again : " when we are in world of Elliott waves we are dealing with possibilities not certainties ".
As shown on the chart, Previous major decline from 16212.23 to 10565.14 can be labeled as impulsive 5 legs down going wave. Normally, we have a counter trend correction after an impulsive wave therefore, recent rally may be just a big counter trend correction bear market rally. Why I used normally ? Since there are some alternatives for this scenario which are beyond scope of this publication . Please remember : " Possibility vs Certainty "
Mentioned five legs down going impulsive wave can be labeled as wave 1 or A which implies for a counter trend correction as wave 2 or B. Strong resistance zone formed by 0.5 and 0.618 Retracement levels has been shown on the chart. This zone is also a valid supply/demand zone. In addition, my private Gann Box analysis confirms this zone as a strong resistance ( I excluded Gann Box from the chart to keep it as clean as possible).
200, 100 and 50 weeks moving averages have been also shown on the chart. As we see, 200 weeks moving average which supported the market at pandemic low was market savior one more time at last major low. 100 and 50 weeks MA s are waiting for the index at our proposed resistance zone. This makes our resistance zone even stronger.
If true, Worst has yet to come as wave 3 or C. If we are going to see wave 3 then may god bless the market.
Please note this is not to frighten anyone especially bulls or giving hope to bears. This is just an analysis which shows a valid possible scenario and I can strongly recommend you to keep this scenario in mind.
I Hope this analysis to be helpful and wish you all the best.
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