Monday, 22 December 2014

NIFTY weekly analysis for 22 December’14 to 26 December’14


Elliott wave theory: It was fantastic week if one took long from lower levels. We are in derivative expiry week. I split it into two parts. First half should be bullish but it will attract selling from higher levels. This is retrenchment of wave ‘a’ which should get sold at top to form a top for wave ‘b’.
Market cycle: It has higher chance to misunderstand above statement. Long term chart has not yet shown any weakness. Moving into New Year, I am expecting this market to go higher. How much can it move? We have yet to find the levels. So far, for this week it is bullish.
Technical indicators: It has turned neutral but it is favouring a recover for this week. I am making my studies on different time frame for RSI. 8300 for Nifty is a key for me which I am expecting to be tested. Above 8300, it can see some impressive move.    

Charting pattern: It has already recovered well from the low of 7961. We can expect more recovery on global strength. Take a note that above 2081 on S&P, it will be ‘inverse H&S’ breakout. 

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