09 December 2014: Nifty Elliott wave analysis: Hope you enjoyed the dip at the break of magical 8500 support. Next key support will emerge at 8400-8390. If breaks then further sell off!!!
You must read previous articles and watch the given chart
carefully to understand this article completely.
For 09 December 2014: -
On 08 December 2014, FII Bought INR 4984.60 crs and DII Bought
INR 1030.65 crs
Why I do technical analysis? Just to enjoy this kind of
trade. I have already said that a possible small correction will begin if it
breaks 8500 levels. It did as the roadmap suggested. We were short and enjoyed.
It has broken 8500 and then it has never even retested 8500. Result came as pin
point fall with a final day’s low at 8432. Based on technical chart we have
every possibility of hitting 8400 levels. Do you know that this is lowest point
of December month’s trade so far? I was plotting a triangle on RSI chart from
past many days. It’s the effect of negative divergence.
For today’s trading session, opening may go on soft note with
immediate trading support emerging at 8400 to 8390 levels. Moving on higher
side 8450 and 8500 will act as stiff trading resistance. Once again, follow up of this selling to very
important to bet for continuation of correction. If this continues then I see a
possible move towards 8300 with a mini bounce. Please refer to the chart to
catch reason based on Elliott wave analysis. I picked whole consolidating wave
to mark wave pattern. I can apply as it is new wave extension which was
consolidating in nature.
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Strategy for Nifty December
future – I said that
8570 and 8540 was key support. Have a look- it failed at 8570 then broken 8540
to issue a panic kind sell off. Now, important support will emerge in the zone
of 8450 to 8430 levels. If it takes our 8430 then then we can see another round
of sell off. If not then a possible recovery can come. So next watch out support will be 8430.
S&P 500 (USA) – I have already said that I am not
going to trade this index. I still believe that yesterday’s correction was also
a part of 0% move. It retraced and came back to 18th November’s
levels. It was just 1% dip. I can still say 2050 to 2035 may offer good
support. I am not in hurry to conclude for beginning of correction. What we
need is to watch out for follow up of trade. Will we get follow up of selling? I
have no answer.
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