this week opening occur with massiv gap down to all Major Indexes around the World! US Markets are still in fear as of Deflation, , of higher rates and, and, and! The same analyst who wrote the last weeks:“..the Sky is the limit..“, appear to know why the market is falling now! That is the tragic of those writers!
My last analyse from Friday, 02 was titled with „Wave (A) of ((4)) is done! As we know now it was not! At the other hand I wrote that a lower low is still possible, but I never forecast this massiv Gap down after Fridays session in NY!
So, as it look for now, todays low @10586 is either wave ((c)) of (A) or wave (3) of an impulsive move to the downside. It stretched more than the 2.618 of the lenght of wave ((a))! And it exceed the target to the downside at 10666, which is a wave 4 of lesser degree!
So for now the odds are not clear and many will depend upon traders behavior in US!
As I commented yesterday one subscribers question, the long term outlook to my view is for India but it is still possible that a wave 4 correction of higher degree has started!
So if you don`t have to trade step at sideline and wait till the first storm is past and checkout for a clear view!
I will do so too!
Have a great week...
Questions and Comments are welcome!
Note!---> This analysis can be wrong. It is just in my view the one with the most probabiltity with the Data which are available to me and by my interpretation of the EW Theory. If you trade this it is done by your own risk and decision! Keep that in Mind!!!!
Data by NSEIndia.com and moneycontrol.com!
Wave 3 of an impulsive move to the downside.
Could you help me in understanding the second option as in what possibility are you looking at and what is the wave structure for this wave 3 to the downside?
Where is wave 1 and 2?
Are you trying to suggest that this is not the 4th of the 5th and some other move has begun?
the correct labeling for the a-b-c must be as following: (A)/(1)-(B)/(2)-(C)/(3)! If the wave structure is not clear, you use this labels! Be eliminating one opportunity after the other, the one with the highest probability is the one u have to follow!