Technical Dissection,Next Direction & Crucial Supports of On Going Correction
Nifty-EOD Chart (13-Apr-2012):-
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1- Bullish Flag Pattern(Falling Channel) in on going Correction
2- C.W.-1(5171.45 on 07-03-2012)
3- C.W.-2(5499.40 on 14-03-2012)
4- C.W.-3(5135.95 on 29-03-2012)
5- C.W.-4(5378.75 on 03-04-2012)
6- C.W.-5 is on
(C.W.:Corrective Waves)
Nifty-EOD Chart (13-Apr-2012):-
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1- Two times support at 200 Day SMA in on going correction and 200-Day SMA is today at 5145.
Conclusions from EOD chartS analysis
Downward Corrective Wave-5 continuation in on going correction and next supports at lower levels are as follows:-
1- 5175-5236
2- 5136-5167
3- Two times support at 200 Day SMA in on going correction and 200-Day SMA is today at 5145.
Fibonacci Retracement Levels(5629-4532) of on going correction are as follows-
13.0%- 5486
23.6%- 5369
27.0%- 5332
38.2%- 5209
50.0%- 5080
61.8%- 4950
70.7%- 4852
76.4%- 4790
78.6%- 4765
88.6%- 4656
Conclusions (After Putting All Studies Together)
Nifty traded more than one hour on 13-04-2012 between 5200-5236 and within above mentioned 1st Support range which is strong support also. Next support range(5136-5167) below 5175 is most crucial because Nifty got 2 times support at 200 Day SMA in on going correction and 200-Day SMA(today at 5145) is lying within this range therefore support getting possibility at or near about Long Term Trend deciding 200-Day SMA can not be ruled out. Firstly above mentioned supports should be watched in the beginning of next week but C.W.-5 is on and bottom B3 formations below 5135.95 can not be ruled out.
Just click following topic Link to understand on going correction nature:-
Lower Tops and Lower Bottoms Formation In On Going Correction
Multiple resistances at higher levels and complete consolidations and base formation will not be seen till then Impulsive Sub Wave-3 after correction completion can not be considered. Although least possibility of sustaining below 200-Day SMA but correction is on and following 3 Crucial Fibonacci Retracement Levels should also be kept in mind.
Crucial 3 Fibonacci Retracement Levels(5629-4532)
1- 38.2%- 5209(Aleady broken down)
2- 50.0%- 5080(Testing possibility can not be ruled out in any correction)
3- 61.8%- 4950(Testing possibility can not be ruled out in any correction)
As Bullish Flag Pattern(Falling Channel) formations in on going Correction therefore finally Indian markets will get supports at any of above levels. Firstly correction completion and and after that Strong rally in the form of Sub Wave-3 will generate to form new highs above 6000(Nifty). As soon as Indian markets will start consolidation and base formation then will be updated according to our last 5 years record.