Hanumanji

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

Thursday, March 8, 2012

Nifty: EOD 7.3.2012

Had started the day with the following chart:


And now the minimum for the (v) has been met, one needs to be very cautious with Shorts as an abrupt upmove to retrace this set of 5 waves(5629-5171*) can take place anytime.
How to catch reversals ?:
On daily charts, Price-RSI does not reflect any negative divergence so far. And also 5 DMA is nowhere in danger of getting breached:

But on the Hour charts,the down-move looks like losing steam as Price-RSI negative divergence as well as closure above 5 Hr. ema both have occurred.

Whether the reversal building up in Hourly charts can transform into Daily charts remains to be seen,though technically speaking, higher time-frames have to be always given more weight-age.


How can EW help us here?
As mentioned in the beginning,the minimum for (v) has been done in following manner:

An analysis of sw5 of (v) , from 5382-5171 can give us some clue.


By the labels shown above , one can argue that a breach of 5244 would confirm the end of wave 5382-5171 as its (iv) would get breached. But this (iv) can also be labelled as an Expanded Flat as shown below:


And then from around 5265 ,we may see a sharp move down to sub-5171.
Now lets examine the above probablity in detail.
While a=5184-5243.55=59.55 was a clear 3 wave form, was b=5243.55-5171.6 a 3 wave form?
If yes,then above labels are valid. If no,then I would call the downmove over at 5171.6


And let this scrutiny be kept pending till Friday morning.


Happy Holi to all of you.




Raghu

2 comments:

  1. Dear Raghuvanshiji,

    Happy Holi to you. Although i don't understand EW or for that matter any other technical but it has become a habit to go through your blog daily. Good work.

    Regards
    Suraj

    ReplyDelete
  2. Dear Raghuji,

    Thanks for the EW Analysis and Wishing you and your family a very happy , joyous, colourful and splendid holiiiiii................

    Kind Regards.

    Sai Prashanth Hariharan

    ReplyDelete

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