Be cautions amid sudden forceful Wave-C correction beginning possibility
Technical Analysis,Research & Weekly Outlook
(Aug 24 to Aug 28,2020)
Nifty-EOD Chart Analysis
(Wave B structure)
Nifty-EOD Chart (21-Aug-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-a of Wave-B(9889.05 on 30-04-2020)
3- Wave-b of Wave-B(8806.75 on 16-05-2020)
4- Wave-c of Wave-B continuation with recent top formation at 11460.40 on 19-08-2020
5- Stochastic-%K(5) is at 71.51 & %D(3) is at 75.86
6- Stochastic is showing negative divergence in Overbought zone
Conclusions from EOD chart analysis
(Wave B structure)
Wave-A of "ABC correction" completed at 7511.10 on 24-03-2020 and Wave-B started which is in continuation with recent top formation at 11460.40 on 19-08-2020 and no confirmation of its completion yet.
Although Nifty is moving up but Stochastics is showing negative divergence in Overbought zone through moving down which is an indication of correction which may begin in the coming week/weeks.
Nifty-Last 5 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Aug 17 to Aug 21,2020):-
Technical Patterns formation in last 5 Sessions intraday charts
1- Selling(Resistances) in last 5 sessions are between:-
A- 11425-11460
B- 11393-11418
2- Consolidation(Supports) in last 5 sessions are sessions:-
A- 11296-11320
B- 11190-11225
3- 5 Sessions actual trading between 11145-11460
Conclusions from 5 Sessions
intra day chart analysis
Last 5 Sessions trading between 11145-11460 with lower levels supports and higher levels equally strong resistances also therefore Nifty will firstly trade and prepare for next decisive moves within last 5 sessions trading range in next week. Sustaining beyond this range should be watched in the coming week/weeks because that will give first signal of next decisive moves beginning.
Nifty-Intra Day Chart Analysis
(21-Aug-2020)
Nifty-Intra Day Chart (21-Aug-2020):-
Technical Patterns formation in today intraday charts
1- Selling between 11393-11418
2- Sharp down
3- Whole day actual trading between 11363-11418
Conclusions from intra day chart analysis
As some selling in sideways market therefore sharp down was seen just before 03:00 PM and closing near the lower levels of the day and expected that some down moves will be seen towards next supports(11290-11325) in the beginning of next week.
Conclusions
(After Putting All Studies Together)
1- Long term trend is up.
2- Intermediate term trend is up.
3- Short term trend is up.
Although still Wave-B continuation no confirmation of its completion yet but it is almost 5 months old therefore generating a signal of time-wise correction completion. As Short and Intermediate Term indicators have turned over bought and showing negative divergence also therefore suggesting deeper correction signals which will begin in the coming week/weeks.
Last 5 Sessions trading between 11145-11460 and finally sustaining beyond this range will generate following next decisive moves beginning signals:-
1- Above 11460 will mean Wave-B continuation towards the top of gap resistance(11433-11536)
2- Below 11145 will mean correction beginning which may be deeper also in the situation of sustaining below following 2 levels and that should also be watched for Wave-B completion confirmations and Wave-C beginning towards ane below 7511.11:-
A- Wave-B Trend line at 10915
B- Long Term Trend decider 200-Day SMA is today at 10829.
Although continuous new top formation of Wave-B but up moves are slow and without force therefore be cautions because sudden forceful Wave-C correction may begin any day in the coming week/weeks.