High possibility of new life time high above 9119.20 after sustaining above 8365
Technical Analysis and Market Outlook
(19-05-2015)
Nifty-EOD Chart (18-May-2015):- |
| Just click on chart for its enlarged view |
1- Bullish Inverted Head and Shoulders formations in last 15 sessions
2- Neckline of Inverted Head and Shoulders at 8365
3- Neckline broken out today
Nifty-EOD Chart (18-May-2015):-
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| Just click on chart for its enlarged view |
1- 15 sessions trading between 7997-8365 from 24-04-2015 to 15-05-2015
2- Nifty is hovered around 11 sessions Long Term Trend decider 200 Day EMA(today at 8192)
3- 3 sessions broken out will get confirmation in next week and that will mean testing possibility of 15 sessions trading range top and Neckline(8365).
Conclusions (After Putting All Studies Together)
Detailed analysis of both above charts have already been updated in following topic on 16-05-2015. Just click following topic link and go through:-
Following lines were told in above topic which proved 100% accurate after 111 Points Nifty rally today :-
1- strong indications of fresh rally after valid break out of last 3 sessions range.
2- Nifty will move above day's highest(8279)
Following lines were told in above topic which should be kept in mind:-
1- 42 Sessions correction from 04-03-2015 and 15 sessions Bullish pattern formation is time wise sufficient for correction completion
2- high possibility fresh rally above 8365 as well as new life time high formation above 9119.20 is also being considered
8365 broken out today and only sustaining above it should be watched for the beginning of Blasting rally. As very short term indicators have moved into Over Bought zone therefore now possibility of intraday or 1/2 sessions correction will be considered but it should also be kept in mind that:-
1- Many times Bull markets complete its correction and consolidate at higher levels also and much deeper correction is not seen.
2- Bull markets complete its correction time wise and not price wise.
Wave-1 begun from 5118.85 on 28-08-2013 and its Wave-5 completed after 18 months 4000 points rally at 9119.20 on 04-03-2015 and 'ABC' correction started. Corrective Wave-'C' completed at 7997.15 on 07-05-2015 which is just above the bottom of Wave-5(7961.35). As Wave-5 almost completely corrected and Bullish Inverted Head and Shoulders formations at the bottom of Wave-'C' therefore strong signals of that whole rally correction completion which started from 5118.85 on 28-08-2013. It ALSO means that Nifty is now prepared for fresh rally above life time high(9119.20) previous rally correction completion.
Although multiple resistances between 8365-9119 but once confirmation of sustaining above 8365 will mean high possibility of fresh rally beginning towards and above new life time high(9119.20). Although no one believe it at this moment but now fresh rally above 9119.20 will be with minimum 50% gains and long term investors should keep in mind this possibility also.