Nifty EOD 25.8.2011

Let me start from yesterday's conclusion:

Q

(v)=4966---downwards in progress as 5 wave

and the most logical target is below 4797.Discernible waves so far are

4966-4896=70

4896-4931=35

4931-4875* is in play and should take us to 4815-4820 levels.

All shorts now should have a Stop Loss at 4932 and target -1 at 4820.

UnQ

We did reach very close to our target-1 ,and that meant the day was quite fruitful,but now of utmost importance is HOW WE REACHED HERE as it is this wave-form that is going to guide us for tomorrow's trade.

And it took a great deal of time & effort to give an acceptable form to this journey from 4966 to 4826.

And I hope it is going to make our Friday one of the most memorable days (as far as fruitfulness,tradewise, is concerned).

Be ready to see first 4900+ and then 4800(-) now in a single day.

That is what I foresee.

This downmove, being called (v) of SW5 of W3 of C ,looks like an Ending Diagonal to me where all the 5 subwaves are going to be 3*3*3*3*3. Currently we have finished three subwaves and 4th is in play:

sw1=4966-4900=66

a=4966-4926=40

b=4926-4962 =36

c=4962-4900=62

sw2=4900-4931=31 as a DZZ wherein

W=4900-4926

X=4926-4896.55

Y=4896.55-4931

sw3=4931-4839=92

a=4931-4875=56

b=4875-4915=40

c=4915-4839=76

sw4 in progress as an extended flat wherein

a=4839-4896=57

b=4896-4826=70(123%)

c=4826-4855* and likely to go above 4896 ,max being 1.618*57=92=4918

And then sw5 coming down by more than 92 points.

Best of luck for your trades.

Raghu