NIFTY 07 May'12:Explanation why it was said not to short @5000-4980? A dot support @ 4986. It can recover as long as it hold.
In my morning updates I quoted NOT to short in the zone of 5000-4980.
It hit a low at 4990 and rebounded a little.
Nifty has few respected levels, one such was 5080 which has violated on last Friday and then technicicans were in search of the next.
I cannot say if fall is over or not but I can say that one should expect a rebound. We might have soft magnitude.
Where we are on Elliott wave theory. We have seen a recent low at 5136 before breaking those levels on Friday. The first upmove from 5136 went up to 5379 and then we have seen the fall. In between it has formed triple corrective pattern but kept on saving 5136 each time before decisive break.
Hence the wave that has retreched now is a up wave from 5136 to 5379. It is retreching from top of 5379 (which I assumed)
Hence 1.618 time must be the meaningful support. It comes at 4986.
(Few of you are intrested in Mathemetics too. |5379-5136=243 pts||243*1.618=393 pts||5379-393=4986|
Hence we rebound. If you are happy then I must update you something in advance that if this wave see further retrechnement then the next levels will be 2.618 times of 243. Which end up @ 4543. Well, do not worry about those as of now.
Regards,
Praveen Kumar
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