04 September 2015: Nifty Elliott wave analysis: Higher LOWs and small positive divergence on RSI may give a signal for bounce to be very close before fresh fall!!!
You must read previous articles and
watch the given chart carefully to understand this article completely.
For 04 September 2015: -
On 03 September 2015, FII Sold INR –
394.31 Crs and DII Bought INR 840.35 Crs
TECHNICAL charting pattern has three
crucial lows, one is at 7667 then another low came at 7699 and yesterday’s low
was at 7754. Although high is still not so convincing but higher low pattern
has emerged. It gives us a sense that market is forming higher low pattern
which can result a relief for 3-5 trading sessions. If not then market will go
on choppy note before fresh fall.
One can easily observe the H&S
pattern emerging with two possible n-line, one is at 7940 and another is at
7725 (last hope). It will break and it will hit a technical target around 6500.
Is it going to happen tomorrow? No. I am giving a price analysis and the long
term tern has changed. This target can be expected in next few months. Usually,
panic can cause more fall so target may be extended on lower side.
For today’s trading session, we may
see flat opening. I am still expecting that my lower targets of 7500 will come
but there is a possible intermediate bounce to test n-line which is at 7940.
Market may be choppy today with marginal up and down. Technical supports will
emerge at each of the low which has given higher low pattern. So these are 7754,
7699 and 7667.
Remember, this may have just odd
bounce but primary trend is down only. High low and a slight positive
divergence on RSI is a hint for possible relief.
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Strategy for Nifty September future – I did not handle the
recovery in good way and gave up most part of my gain. Well, market can give
multiple opportunities. Technically a rise may come. I have yet to conclude for
the possible target. At once it looks that if recovery comes it will try to
hunt for the target near 7940. It means n-line of H&S pattern may be tested
again. Remember, this used to happen multiple time as target for dip is big.
S&P 500 (USA) – last night, it hits a high at 1975 and then drag
lower again. Well, this used to happen and this can happen again. Based on
chart, if it can manage to sustain above 1940 it can advance towards 1990-2000
levels, which can be good zone for shorting. So far, possible choppy days are
coming before fed meeting. Post fed minutes, do expect fall. I did not said
anything for fed yet but now it is time to say. Yes, Fed is going to make a
rate hike.
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