Trade Set-up for 27-02-2012

Trust all of you would have gone through the W4 post in Special Updates section.
For those who missed it, here is the link: http://ewcountsatniftyparadox-specialupdates.blogspot.in/2012/02/wave-4lets-get-into-its-details.html

Now on the basis of those details,the outside boundary for (W4 currently in play) gets bound above 5323.
A tick below it would lead me to remove the label of W4 and substitute it by the label of Corrective to Impulse 4531-5629 (=1098) and give me the targets of 5080(50% retracement) and 4950(61.8% retracement).

But currently , let me talk about it as W4 (with subwaves ABC) of  which apparently  A and B have played out and C is in play in following manner:

A=5629-5461=168
B=5461-5537(though ended at 5521)
C=5521 downwards--
and after considering various counts like:

I feel inclined to choose the following labels as my Preferred Count:

And most likely opening as per this count is between 5422-5455 and should be used as a shorting opportunity with SL at 5455.1 with Target 1 as 4385.
And even if we open below 5406 wait for rises to short with SL at 5455.1

The wave form taken to test 5385 would guide us further.So watch this space.
I plan to post an Intra-day update as well at 1.00 PM to discuss further probabilities. 


Conclusion:
1.Short at rise till 5455.1 for target ranging from 5385-5323.
2.20DMA at 5382 ;weekly pivot at 5388 ans weekly support at 5346 are other probable support levels that need mention.
3.Longs should be created in 5335-5350 range with SL at 5323.


Raghu