Sunday, May 6, 2018

Nifty 05/07/2018

Not sure if current correction is wave 4 or an ABC after wave 5 but this correction is in the form of ABC. Below are counts as per my understanding -

'A' wave in 5 sub waves -
i. 10784-10718=66
ii. 10718-10770=52
iii. 10770-10648=122(appx. 200% of 'i')
iv. 10648-10708=60
v. 10708-->10602( 78.6% of i-iii, done already??)

Looking at global markets it looks like wave 'v' is done and a corrective wave 'B' will start on Monday.

Now wave 'B' will be of a three subwaves and will travels max 61.8% of 'A'(considering this is a zigzag correction as 'A' is made of 5 subwaves).

Length of 'A' is 182(10784-10602) points, so target for 'B' waves will be 10672(38.2%)/ 10715(61.8%). 10715 level can be used as stop loss and to enter long. If NS goes above 10715, i'll mark current correction as wave 4 and start of wave 5 from 10602 targeting 10950+/-

If 10715 doesn't break(and assuming 'B' finished near 10715) then 'C' wave may start in 5 subwaves targeting-10533(100% of 'A')/ 10463(138.2%)/10420(161.8%).



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