Dear Friends,
The sideways move going on since 26/8/2011 has been posted alongside.
However,till date I have not been able to fit it into a fully satisfying patterns like ABC or WXY.
Here, trying to share my thought-process on this sideways move with you, I have tried to line-out the Impulses(depicted in blue lines) and Correctives(3 wave forms-depicted in red lines).
Most conspicuous thing is that none of the Impulses have the "ideal" 5 wave fractals and I have to term these Impulses because of the ferocity of the move(up or down).
Now sharing the labeling process with all of you. The first label was an ABC which was an irregular flat(or a running flat) with C(=4758.85-5034.25=275.4) being 2 points short of 0.618*A (A=4720-5169.25=449.25). On Charts this label could be seen as:
http://img41.imageshack.us/img41/9131/nifty2.png
(I tried pasting this chart here but couldnot so please go to the link)
Now continuing the labeling part further, this ABC(mentioned above) was supposed to be the end of Corrective but as it turned out later,this corrective decided to do a Double Combination called WXY where the downmove from 5034-4729 also turned out to be a 3wave form which was labeled X and then the charts could be seen as
http://img408.imageshack.us/img408/875/nifty3.png
Then the Y (another corrective form) started from 4729 upwards and its form so far has confirmed its impulsive nature(which points to the current wave 4729-5141 being Y.A) but proper (5 wave)fractals for this Y.A have so far eluded me. So all I have been able to do so far has been calling this upmove as Y.A and not able to fix any target for this Y.A so far But this Impulse form of Y.A( as against the 3 wave form suggested by me till this day) suggests that this Y would be a Zig-Zag(i.e Y.B to go down & Y.C to come up again) ,quite capable of traversing to 5300+ levels.
We may go down as Y.B but would not retrace more than 80% of Y.A and then come up again as Y.C.
So I am ending this post with following chart:
http://img27.imageshack.us/img27/4537/nifty4.png
And a word of caution for all friends that this sideways Corrective started from 4720 may continue for some more time as Y.B and Y.C
Also this Y.B may do only 38.2% retracement of Y.A( or may be 76.4% who knows?) so kindly bear it in mind.
Best of luck.
Raghu
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