NIFTY weekly analysis for 13 October’14 to 17 October’14
Elliott wave theory: It has just closed near to 7850
levels. This is making charts concerning now. In fact, it was concerning at
higher levels itself. It seems that we will start getting few closes below 7850
levels. If this happens then we can hope for a down side towards 7600-7500
levels sooner in few weeks.
Market cycle: Nifty is almost away by five weeks
from its all-time high and practically it is heading for two month’s lowest
levels. If you remember, Wolfe wave truncation has happened at this level
itself. So it may take its effect anytime now.
Technical indicators: MACD and RSI are growing with
negative divergence. This is alarming. This is prime reason that I am advising
strong caution. This indication is running from past more than four weeks.
Charting pattern: I can still say that below 7850 on
closing basis, Nifty should see a fall towards 7500-7600 levels. This may be
due wide difference between moving average support. Reason of price fall can be
anything.
2 comments
As per chart published, it is showing the possible end of wave '5'.
Hope u can able to see marking 1,2,3 and 4.
Confirmation point can be 38.20%. Hence, not marked wave '5'. It is weekly chart.
As per previous so many feedback by readers, most readers wants to read conclusion and less wording on technical write up.
So, in limitation of length of article, I need to cover most part.
Although, considering your expectation, I will try to explain details Elliott wave progression in coming articles.
I generally take good support of technical indicator for better comfort in wave counting and I am able to save my self on possible truncation points.
Regards,
Praveen Kumar