Technical Analysis,Researches & Market Outlook
Nifty-EOD Chart(21-Dec-2011):-
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| Just click on chart for its enlarged view |
Technical Patterns and Formations in EOD charts
1- Wave 1 top at 4693.
2- Strong rally and down moves above 4693 in last 25 months.
2- Closing at 4693.15 on 21-12-2011.
Conclusions
Wave 1 begun from 2252.75 on 27-10-2008 and it completed at 4693.
As per Elliot Wave Theory:-
"The bottom of wave 4 should not dip below the top of wave 1 of the same degree,at least on a closing price level"
But Nifty closed below 4693 in 3 previous sessions and gave strong signal as well as almost confirmation of whole last 3 years waves structure failure. As it was a big development therefore following topic was posted on the same day at 02:29:00 AM on 17-12-2011
25 Months Trend and Waves structure Failure on 16-12-2011
As per our view some more confirmations were required for failure of such huge structure therefore its confirmation demand was also told in above topic. Nifty reversed with strong note on 21-12-2011 and closed exactly at 4693.15 as well as revived the survival hopes of 3 years structure and beginning of impulsive Wave 5 after completion of corrective Wave 4.
Nifty-EOD Chart(21-Dec-2011):-
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| Just click on chart for its enlarged view |
Technical Patterns and Formations in EOD charts
1- Wave 2 completion at 3919 on 13-07-2009
2- Wave 3 completion at 6338 on 05-11-2010
3- Confirmation required for Wave 4 completion at 4531.15 on 20-12-2011
4- 13 Months Falling Corrective Channel formation
5- No big reversal pattern formation
Conclusions (After Putting All Studies Together)
As no big reversal pattern and 13 months down moves were seen in corrective falling channel therefore it was expected that finally corrective Wave 4 will complete and Wave 5 will commence but whole waves structure broken after slipping below 4693. Nifty closed exactly at 4693.15 on 21-12-2011 and survival of 3 years waves structure hopes revived yesterday therefore first of all only sustaining beyond 4693 should be watched because following implications are confirm beyond 4693:-
1- Below 4693 will mean fresh recounting of Waves structure and crashing of Indian markets like World Trade Centre on 11-09-2001.
2- Above 4693 will mean reincarnation of almost buried impulsive waves 5 to form in all time highs in the coming years.
As no big reversal pattern and corrective falling channel in last 13 months down moves therefore expected that firstly Wave 4 correction compleletion confirmation through sustaining above 4693 and then impulsive Wave 5 will get confirmation in the coming year as well as 2012 will prove Bullish year after all corrections completion in 2011.
