Technical Analysis and Research For 31-10-2012
Nifty-EOD Chart (30-Oct-2012):- |
| Just click on chart for its enlarged view |
1- Wave-2 completion and Wave-3 beginning (4770.35 on 04-06-2012)
2- Sub Wave-1 of Wave-3(5348.55 ON 10-07-2012)
3- Sub Wave-2 of Wave-3(5032.40 on 26-07-2012)
4- Sub Wave-3 of Wave-3(5448.40 on 23-08-2012)
5- Sub Wave-4 of Wave-3(5215.70 on 05-09-2012)
6- Sub Wave-5 of Wave-3 completion at 5815.35 on 05-10-2012.
7- Sub Wave-5 of Wave-3 gained 600 Nifty points.
8- Wave-3 gained 1045 Nifty points.
7- 16 Sessions sideways correction between 5639-5733.
8- 24 Sessions most time trading between 5639-5733 with Bearish Head & Shoulders formation and its Neckline forcefully broken down on 30-10-2012.
Conclusions from EOD chart analysis
16 Sessions sideways correction between 5639-5733 but strong indication of deeper correction after Bearish Head & Shoulders formation in last 24 sessions as well as its neckline broken down on 30-10-2012 after RBI Credit Policy announcement. Although forceful break down and closing also well below neckline but firstly break down validity confirmation is required through following 2 filters:-
1- 3 Days sustaining below Neckline and/or
2- Slipping 3% below Neckline.
Breaking down confirmation will mean possibility of following 2 corrective moves:-
1- Firstly correction of 600 Nifty points up moves of Sub Wave-5 of Wave-3 from 05-09-2012 to 05-10-2012
2 As correction of Wave-3 started after completion of Sub Wave-5 therefore Indian markets are technically mature for 'ABC' correction of whole 1045 Nifty points up moves of Wave-3 from 04-06-2012 to 05-10-2012
Firstly understand the validity of correction and get confirmation through above mentioned 2 filters and then prepare yourself for above 2 corrective deeper down moves.