Monday, 17 November 2014

NIFTY weekly analysis for 17 November’14 to 21 November’14


Elliott wave theory: It was only and only wave theory which has given the resistance of 8416 which has worked so well. Based on that, I can say that if it breaks 8290 then we can a possible dip towards 8100-8000 levels. Equally, overshoot above 8416 is also possible as long as it is staying above 8290 levels   
Market cycle: Global market may be on the last phase of rise. In general, global market used to take a dip in post QE effect. S&P used to take a dip at least after a month. I still believe that correction is close.
Technical indicators: Now, it is the time to count for weekly divergence again. A top is sooner as RSI has not moved with any greater strength.  
Charting pattern: I still believe that zone of 8350 to 8416 will a zone of short. Charting patterns are indicating for sluggish move before correcting. This upcoming correction can bring down Nifty in the zone of 8100 to 8000 levels. 

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