Correction continuation towards/below 7994
Intra Day Chart Analysis & Market Outlook
(07-05-2015)
Nifty-Intra Day Chart (06-May-2015):- |
| Just click on chart for its enlarged view |
1- Huge fall in first Hour
2- More than 5 hours trading with selling patterns formation between 8083-8181
3- Whole day actual trading between 8083-8331
Conclusions from intra day chart analysis
Following 4 crucial were updated more than 10 times in previous 4 Weeks:-
1- 8186(Long Term Trend decider 200 Day EMA)
2- 8269(Neckline of Bearish Head and Shoulders Pattern)
3- 8353(Lower rising line of "9 Months Broadening Rising Channel")
4- 7994(100% of Wave-'A')
Just go through previous 4 weeks Outlooks and understand the calculations and importance of above mentioned 4 levels. Following conclusive moves were updated after breaking down confirmations of above levels:-
1- Sustaining below 8186 means Long Term Trend turning down confirmation and resultant correction continuation more than 3/4 months
2- Sustaining below 8269 means Bearish Head and Shoulders's Neckline broken down and resultant deeper correction.
3- Sustaining below 8353 means much deeper/huge correction after "9 Months Channel" broken down confirmation
4- 7994 will be 100% correction of Wave-'A' and this levels has not been tested in on going correction yet. This levels will decide the length and life of correction.
As more than 5 hours trading with selling patterns formation between 8083-8181 today therefore expected that Nifty will test 7994 and finally sustaining it beyond will decide next trend in following manner:-
1- Nifty may slip below 7994 but if finally sustain above it in 2/3 sessions then "ABC" correction possibility will be considered and fresh up moves will be seen after "ABC" correction completion.
2- If finally Nifty sustain below 7994 then 5 Waves correction will be seen and that will mean 5th Wave down moves much below 7994. As Lower rising line of "9 Months Broadening Rising Channel" broken down confirmation therefore its possibility is high.
Correction is on and its continuation is expected towards/below 7994