Elliott wave theory: I would be in better condition to
say 8181 as short term top if, I would have got close below 7850 but it just
bounced from those levels. Wave theory is still suggesting for a dip from
higher levels this week. Firstly, 8000 is tough task for bulls. If RBI favours
on Tuesday then only one can expect 8100 levels and that can be maximum for the
week. Do not buy momentum if comes on higher side.
Market cycle: Nifty all time high of 8181 is three
weeks old but it is still saving on spot at 7850 support. Please refer to trend
line also which is saying how important is this 7850 levels. If it breaks then
expect a range of 7650 to 7450 as downside target range.
Technical indicators: MACD and RSI are growing with
negative divergence. This is alarming. This is prime reason that I am advising
strong caution.
Charting pattern: I can still say that above 7850, a
bounce deserve buy the way it comes is more important. S&P upgrade did not give
time to think to react. A sharp rise always favours bulls. So some upside is
possible before sell off from high.
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