Wave-C deeper correction confirmations from 3 levels
Technical Analysis,Research & Weekly Outlook
(Aug 10 to Aug 14,2020)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (07-Aug-2020):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-1 beginning from 6825.80 on 29-02-2016 after 1 financial year(2015-16) correction completion
2- Impulsive Wave-1 completion at 8968.70 on 07-09-2016 and corrective Wave-2 beginning
3- Corrective Wave-2 completion at 7893.80 on 26-12-2016 and impulsive Wave-3 beginning
4- Impulsive Wave-3 completion at 11171.50 on 29-01-2018 and corrective Wave-4 beginning
5- Corrective Wave-4 completion at 9951.90 on 23-03-2018 and impulsive Wave-5 beginning
6- Impulsive Wave-5 completion after new life time high formation at 12430.50 on 20-01-2020 and Wave-A of "corrective ABC Waves" beginning
7- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
8- Wave-B continuation with recent top formation at 11341.40 on 29-07-2020
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-1 which started from 6825.80 on 29-02-2016 completed at 12430.50 on 20-01-2020 and its Wave-A of "corrective ABC Waves" begun. Corrective Wave-A completed at 7511.10 on 24-03-2020 and Wave-B started which is in continuation with recent top formation at 11341.40 on 29-07-2020.
Nifty-EOD Chart Analysis
(Wave B structure)
Nifty-EOD Chart (07-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 11341.40 on 29-07-2020
5- Last 15 sessions sideways trading between 10883-11341
Conclusions from EOD chart analysis (Wave B structure)
Corrective 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 11341.40 on 29-07-2020.
Last 15 sessions sideways trading between 10883-11341 and once sustaining below 10883 will mean first strong signals of Wave-B completion and Wave-C beginning towards and below the bottom of Wave-B(7511.10) because that will be break down confirmation of 15 sessions like big trading range.
Nifty-EOD Chart Analysis
(Average & Trendline)
Nifty-EOD Chart (07-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-B continuation with recent top formation at 11341.40 on 29-07-2020
3- Wave-B Trend line at 10915
4- Long Term Trend decider 200-Day SMA is today at 10850
Conclusions from EOD chart analysis
(Average & Trendline)
Last 15 sessions lowest is at 10883 and once sustaining below it will mean break down of Wave-B Trend line also which is today at 10915 and that will be strong signal of Wave-B completion and Wave-C beginning.
Long Term Trend decider 200-Day SMA is today at 10850 and sustaining below it will mean Long Term Trend turning down confirmation also which will be mean decisive down moves beginning towards and below the bottom of Wave-B(7511.10) .
Nifty
Last 15 Sessions intraday charts analysis
Nifty-Intra Day Chart (Jul 20 to Aug 07,2020):-
Technical Patterns formation in last 15 Sessions intraday charts
1- Selling(Resistances) in last 15 sessions are between:-
A- 11211-11256
B- 11244-11341
2- Consolidation(Supports) in last 15 sessions are sessions:-
A- 11027-11068
B- 10957-10998
C- 10883-10934
3- 15 Sessions actual trading between 10883-11341
Conclusions from 15 Sessions intra day chart analysis
Last 15 Sessions trading between 10883-11341 with lower levels supports and higher levels equally strong resistances also therefore Nifty will firstly trade and prepare for next decisive big moves within last 15 sessions trading range in next week.
As 15 sessions like big trading range therefore finally sustaining beyond this range will certainly generate big moves which will begin in the coming week/weeks and that should be also watched for those big moves confirmations.
Nifty
Intra Day Chart Analysis(07-Aug-2020)
Nifty-Intra Day Chart (07-Aug-2020):-
Technical Patterns formation in today intraday charts
1- Sharp up after weaker opening
2- More than 5 hours sideways trading between 11169-11231
3- Whole day actual trading between 11143-11231
Conclusions from intra day chart analysis
As most Asian markets were weak and some were more than 1% down last Friday morning therefore negative opening of Indian markets but sharply up after 15 minutes and after that whole day trading was sideways between 11169-11231.
Although closing was near the higher levels of the day but clear intraday trading patterns were not seen therefore firstly sustaining beyond 11169-11231 should be watched in the coming week for first strong signal of next decisive moves beginning.
Conclusions (After Putting All Studies Together)
1- Long term trend is up.
2- Intermediate term trend is up.
3- Short term trend is sideways between 10883-11341 for the last 15 Sessions.
"ABC correction" of that rally is very much on which started from 6825.80 on 29-02-2016 completed at 12430.50 on 20-01-2020. Corrective Wave-A of this correction completed at 7511.10 and Wave-B begun which IS moving up with recent top formation at 11341.40 on 29-07-2020.
Although no confirmation of Wave-B completion yet but Nifty has turned sideways for the last 15 sessions at the top of Wave-B between 10883-11341 and finally sustaining beyond this 15 sessions trading range will decide the life of Wave-B in following manner:-
1- Sustaining above 11341 will mean Wave-B continuation towards the top of Wave-A(12430.50)
2- Sustaining below 10883 will mean strong possibility Wave-B completion and Wave-C beginning towards and below the origin of Wave-B(7511.10)
As both supports and resistances have been developed between 10883-11341 in the last 15 sessions therefore firstly Nifty will have to trade and prepare for those next above mentioned one sided decisive moves in the coming week. As Wave-B is more than 4 months old therefore generating a signal of time-wise correction completion also hence sustaining below 10883 and/or its forceful break down will mean much bigger down moves confirmations.
As Wave-B seems to be mature for completion therefore finally sustaining below following 3 levels should be watched in the coming week/weeks for Wave-B completion and Wave-C beginning for deeper correction:-
1- 15 sessions trading range lowest at 10883
2- Wave-B Trend line at 10915
3- Long Term Trend decider 200-Day SMA is today at 10850