The latest correction (in last week of April & first week of May) has got some significance from a pure technical analysis perspective. Weekly chart is being considered for analysis.
OBSERVATION 1: For the third time if not more, we could see Nifty appears to have peculiar price action on its second attempt to break life time high. Each time in the previous two occurrences it appears to experience a sharp price correction form the life time high.
But in each of the previous two occurrences the price fall seems to get arrested between 38.2% and 50% of the correction from second top and went on to make life time highs.
OBSERVATION 2: We could also observe that the time period for retest of life time highs is becoming half. In first instance it took about 36 months (3 Years) for Nifty to retest life time highs.
In second instance the time period had reduced by half to about 18 months (1.50 Years). In current scenario, the time span is about 9 months (0.75 Years).
OBSERVATION 3: In the previous 2 occurrences (Figure 2) NIFTY has moved approximately 2700 points after breaking out from their previous Life Time Highs.
FORECAST: If the pattern is to repeat for the 3rd time, we expect NIFTY to reverse somewhere in the range of 11140 to 10920 and break its previous life time high (11860 area) to begin its 2700 point journey towards 14500.
OBSERVATION 1: For the third time if not more, we could see Nifty appears to have peculiar price action on its second attempt to break life time high. Each time in the previous two occurrences it appears to experience a sharp price correction form the life time high.
But in each of the previous two occurrences the price fall seems to get arrested between 38.2% and 50% of the correction from second top and went on to make life time highs.
OBSERVATION 2: We could also observe that the time period for retest of life time highs is becoming half. In first instance it took about 36 months (3 Years) for Nifty to retest life time highs.
In second instance the time period had reduced by half to about 18 months (1.50 Years). In current scenario, the time span is about 9 months (0.75 Years).
OBSERVATION 3: In the previous 2 occurrences (Figure 2) NIFTY has moved approximately 2700 points after breaking out from their previous Life Time Highs.
FORECAST: If the pattern is to repeat for the 3rd time, we expect NIFTY to reverse somewhere in the range of 11140 to 10920 and break its previous life time high (11860 area) to begin its 2700 point journey towards 14500.
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