Technical Analysis and Market Outlook(14-05-2013)
Nifty-Intra Day Chart (May 07 to May 13,2013):-
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1- Good selling in previous week.
2- 6 sessions lowest formation in a single day down moves on 13-05-2013.
Conclusions from 6 Sessions intra day chart analysis
Although 6 sessions lowest formation in a single day down moves on 13-05-2013 but intraday showed selling formations in previous week therefore we clearly told for following lines for correction in previous sessions:-
1- On 10-05-2013 in Correcion on cards:-"Short Term correction is very much possible"
2- On 11-05-2013 in Technical Analysis and Market Outlook(11-05-2013):-
i- "correction is very much due because selling patterns seen in previous sessions also"
ii- "emergence of selling patterns in intraday charts therefore correction is very much due now"
iii- " it should be kept in mind that Short Term Correction is very much due and may begin any day"
As was clearly told for correction again and again same happened yesterday,Nifty closed below the lowest of previous 5 sessions and formed almost 'Engulfing Bearish Candle' which is confirmation of Short Term correction. As correction was due after previous 5 sessions selling therefore seen yesterday and such complete consolidation is also required for next upward wave above 6114.
Long and Intermediate Term Trends are up and Short Term Trend turned down as well as confirmation of Corrective Wave-A of impulsive Wave-5 yesterday. Now 'ABC' correction is on and following Fibonacci Retracement Levels levels should be watched for correction completion confirmations:-
27.0%- 5942
38.2%- 5870
50.0%- 5795
61.8%- 5720
70.7%- 5663
76.4%- 5627
Correction confirmation and it will take its own time. Let down moves stop and consolidation begin as well as correction complete then will be updated in the same manner as being done in for the last 3 years.