Hanumanji

Hanumanji
Jai Hanuman Gyan Gun Sagar Jai Kapeesh Tihu Lok Ujaagar Ram Doot Atulita Baladhaama Anjani Putra Pavanasuta Naama

Monday, November 28, 2011

Nifty EOD 28.11.2011



So of the alternative probabilities mentioned on Friday,one got matured today and it was:

Today's Nifty move was bulid on this Probability and we are in a 5 wave A form which has following labels:

And so our fractals for Corrective SW4 now stand as:
Wave A(5 wave from):
A1=4639-4708=69
A2=4708-4669=39
A3 in progress as a 5 wave;
Can be anything from 1.62*A1 to 4.25*A1 (i.e. from 112 to 294) so far:
(i)=4669-4771=102
(ii)=4771-4693=78
(iii)=4693-4859*=166(163%) thus A3 has covered 190 i.e 2.75*A1 and here we have to take help from classical TA as this (iii) has done the minimum 1.618*(i) prescribed by EW but max. limit mentioned in EW analysis says that it can go much further.
So lets come to the Daily Nifty chart:
While this upmove has breached all "preliminary " trendlines & channels shown in the chart,one resistance band of 4885-4915 is expected to "contain" this A of SW4.I suggest to all fellow readers not to take short positions in anticipation.

Raghu

2 comments:

  1. Raghu ji,

    Q
    one resistance band of 4885-4915 is expected to "contain" this A of SW4
    unQ
    Can u please elaborate this line..

    Thanks
    Sekar

    ReplyDelete
  2. Dear Sekar,
    EW is the best "Wave Pattern Defining" tool I know.However even after identifying the motive we have to struggle to find its destination as W3 can be 162-425% of W1 and C can be 62-160% of A. I find trendlines & momentum studies do act as handy guides to identify probable destination levels.

    Now coming to your specific query, SW2(=5205-5326) of the current downmove from 5400 was 61.8% of SW1(=5400-5205).So SW4's most probable retracement percentage comes to 38.2% of SW3(=5326-4639=687)i.e around 4902.
    And if you notice the Nifty moves of last 3 months,4885-4915 band had proved to be a good support levels in Nifty Daily & Weekly charts and therefore for any upmove this band has to now act as a resistance.

    ReplyDelete

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