Hello Traders,
on January 17 NIFTY50 extend slightly higher to 18321 and let market participants know, „well new wave of „glory“ is underway! Instead, on January 18 it made it's high at 18350 and reversed sharply to the downside, as I mentioned in my latter analysis on January 16!
Since that day, N50 has lost 865 points in just four trading days! That is a massive loss!
From an Elliottwave perspective, we have just two scenarios to favor.
On the daily, you can track the bullish view.
Per my count, I see N50 in a wave iv (green) that is close to be done. I know! Some of you will say.“ Hey, this decline is moving too deep, following Elliott rules!“ And hey, you are right. But recall, it hasn't broken any rule which are valid for a wave 4 moves!
So, what could it be instead? Correct! Another wave one and two. So we can label the chart within waves three and four, or waves one and two!
For the bearish view. Check the hourly chart!
I have labeled it bearish. A break of the black trend line (hourly) would be another mosaic for the bearish view to establish!
The bulls must wait of a break of the 18165 range to become bullish again!
I recommend the sideline, as long as chart patterns do not favor one or the other side!
So, be patient this day's. Possibly, markets have seen a major high!!!!
Have a great week.....
Ruebennase
Feel free to as or comment!
Trading this analysis is at your own risk!
on January 17 NIFTY50 extend slightly higher to 18321 and let market participants know, „well new wave of „glory“ is underway! Instead, on January 18 it made it's high at 18350 and reversed sharply to the downside, as I mentioned in my latter analysis on January 16!
Since that day, N50 has lost 865 points in just four trading days! That is a massive loss!
From an Elliottwave perspective, we have just two scenarios to favor.
On the daily, you can track the bullish view.
Per my count, I see N50 in a wave iv (green) that is close to be done. I know! Some of you will say.“ Hey, this decline is moving too deep, following Elliott rules!“ And hey, you are right. But recall, it hasn't broken any rule which are valid for a wave 4 moves!
So, what could it be instead? Correct! Another wave one and two. So we can label the chart within waves three and four, or waves one and two!
For the bearish view. Check the hourly chart!
I have labeled it bearish. A break of the black trend line (hourly) would be another mosaic for the bearish view to establish!
The bulls must wait of a break of the 18165 range to become bullish again!
I recommend the sideline, as long as chart patterns do not favor one or the other side!
So, be patient this day's. Possibly, markets have seen a major high!!!!
Have a great week.....
Ruebennase
Feel free to as or comment!
Trading this analysis is at your own risk!