8269 will decide the life and depth of on going correction
Technical Analysis,Research & Weekly Outlook
(Apr 27 to Apr 30,2015)
Nifty-EOD Chart (24-Apr-2015):- |
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1- 7961.35 on 17-12-2014(Wave-5 beginning after Wave-4 completion)
2- Sub Wave-1(8445.60 on 05-01-2015)
3- Sub Wave-2(8065.45 on 07-01-2015)
4- Sub Wave-3(8996.60 on 30-01-2015)
5- Sub Wave-4(8470.50 on 10-02-2015)
6- Sub Wave-5 of Wave-5 completion at 9119.20 on 04-03-2015 and 'ABC'correction beginning
7- Wave-'A'(8269.15 on 27-03-2015)
8- Wave-'B'(8844.40 on 15-04-2015)
9- Wave-'C' continuation with recent bottom formation at 8273.35 on 24-04-2015
10- Long Term Trend 200 Day EMA(today at 8186)
Nifty-EOD Chart (24-Apr-2015):-
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1- Head and Shoulders Bearish Pattern formations in 67 sessions with Neckline at 8269
Nifty-EOD Chart (24-Apr-2015):-
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1- Intermediate Term Trend is sideways between 8269-8844 for the last such long 27 sessions.
Nifty-Intra Day Chart (Apr 21 to Apr 24,2015):-
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1- Mixed Patterns between 8419-8460 on 21-04-2015
2- Mixed Patterns between 8371-8449 on 22-04-2015
3- Support between 8284-8318 on 22-04-2015
4- Selling between 8483-8504 on 23-04-2015
5- Mixed Patterns between 8361-8455 on 23-04-2015
6- Mixed Patterns between 8321-8366 on 24-04-2015
7- Consolidation between 8274-8304 on 24-04-2015
8- 4 Sessions most time trading between 8321-8460
9- 4 Sessions actual trading between 8274-8504
Conclusions from 4 Sessions intra day chart analysis
Last 4 sessions most time trading between 8321-8460 with mixed Patterns formations within it therefore valid break out of this range will be first strong indication od next big moves. As selling above it up to 8504 and consolidation below it up to 8274 therefore sustaining beyond 8274-8504 will be confirmation of next big trend.
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Short Term Trend is down.
2- Intermediate Term Trend is sideways between 8269-8844 for the last such long 27 sessions.
3- Long Term Trend is up and its decider 200 Day EMA is today at 8186.
Now Wave-'C' of 'ABC' correction continuation and no indication of its completion yet. Wave-'A' corrected 850 points and if Wave-'C' corrects 100% of Wave-'A' then on going Wave-'C' which started from 8844 may correct up to 7994(8844-850).
Intermediate Term Trend is sideways between 8269-8844 for the last 27 sessions with recent bottom formation at 8273.35 in previous trading session(24-04-2015) which is just above 8269. Although 56 points immediate fast recovery after after bottom formation at 8273.35 on 24-04-2015 but sustaining beyond 8269 should be firstly watched in the coming week for the confirmation of Intermediate Term Trend in following manner:-
1- Sustaining below 8269 will mean Intermediate Term Trend turning down and correction continuation confirmation.
2- Sustaining above 8269 will mean sideways Intermediate Term Trend confirmation between 8269-8844.
Last 4 Sessions most time trading with Mixed Patterns formations between 8321-8460. As some selling just above it up to 8504 and consolidation just below it up to 8274 therefore firstly Nifty has to prepare for next decisive moves between 8274-8504 and should be firstly watched in next week.
As Bearish Head and Shoulders Pattern formations in last 67 sessions with Neckline at 8269 which will decide Intermediate Term Trend also therefore once sustaining below 8269 will mean high possibility of deeper correction. In this situation Long Term Trend will be at stake because its decider 200 Day EMA is today at 8186 which is only 83 points below 8269 therefore 8269 has become most crucial and next trend decider.
Correction is on,no confirmation of its completion yet and 8269 will decide the life and depth of on going correction. It should be kept in mind that once sustaining below or forceful breaking down of 8269 will mean emergence of deeper correction possibility therefore sustaining it beyond should be firstly watched in next week.