Nifty will give First Strong Indication of Next Big Moves from Pennant Pattern Break Out
Technical Analysis and Market Outlook
(13-01-2015)
Nifty-EOD Chart (12-Jan-2015):- |
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1- Wave-5 completion at 8626.95 on 04-12-2014 and 'ABC' correction beginning.
2- Wave'A'(7961.35 on 17-12-2014)
3- Wave'a' of Wave'B'(8364.75 on 23-12-2014)
4- Wave'b' of Wave'B'(8147.95 on 26-12-2014)
5- Wave'c' of Wave'B'(8445.60 on 05-01-2015)
6- Wave'a' of Wave'C'(8065.45 on 07-01-2015)
7- Wave'b' of Wave'C' continuation with its recent top formation at 8332.60 on 12-01-2015
Conclusions from EOD chart analysis
It should also be kept in mind that 26 Sessions Correction continuation with Pennant Pattern formations and valid break out of Pennant line(Upper or lower) will be strong indication of correction completion/continuation.
Nifty-Intra Day Chart (12-Jan-2015):-
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1- Selling between 8287-8297
2- Buying between 8275-8283
3- Consolidation between 8253-8369
4- Up moves in Bearish Rising Channel
5- Whole day actual trading between 8245-8332
Conclusions from intra day chart analysis
As Dow's Futures recovered more than 100 points from lower levels and traded more than 80 points up after 12:30 PM and all European markets started to trade with good gains after positive opening therefore sentiment improved and Indian markets recovered from lower levels and closed near the higher levels of the day.
Although Nifty closed 0.46% up but as such consolidation was not seen and selling patterns were also seen therefore view will not be Bullish because today up moves were on the back of Global markets Bullish sentiments and not after complete consolidation as well as Up moves were with Bearish Rising Channel.
Conclusions (After Putting All Studies Together)
26 Sessions Correction between 7961-8626 with lower levels supports/consolidations and higher levels Resistances/selling therefore some more preparations(fresh positions formations) is still required for valid break out of this range and confirmation of deeper correction continuation below 7961 or correction completion above 8626. As correction continuation with Pennant Pattern formations therefore valid break out of its lines will give first strong indication of next big moves.
As Waves theory is suggesting that Wave'C' is on for down moves below 7961 therefore expected that Nifty will not move above Wave'c' of Wave'B'(8445.60) and will slip below 7961 after follow up selling in the coming sessions.