Blasting Rally towards and above Life Time High(9119.20)
Technical Analysis,Research & Weekly Outlook
(Jul 06 to Jul 10,2015)
Waves structure of on going 5 Waves correction
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1- Wave-5 completion at 9119.20 on 04-03-2015 and 5 Waves correction beginning
2- Wave-1(8269.15 on 27-03-2015)
3- Wave-2(8844.40 on 15-04-2015)
4- Wave-3(7997.15 on 07-05-2015)
5- Wave-4(8489.55 on 22-05-2015)
6- Wave-5(7940.30 on 12-06-2015)
7- Falling Trend line of correction broken out
8- Pull Back Rally continuation with recent top formation at 8497.75 on 03-07-2015
Conclusions from EOD chart analysis
5 Waves of correction completed at 7940.30 on 12-06-2015 and Pull Back Rally continuation with full retracement of Wave-4(8489.55) after recent top formation at 8497.75 on 03-07-2015 but closing just below at 8484.90. It means that emergence of strong indication of correction completion confirmations last Friday.
Whole correction in Bullish Flag Pattern formation
Nifty-EOD Chart (03-Jul-2015):- |
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1- Wave-5 completion at 9119.20 on 04-03-2015 and Correction beginning
2- Corrective Wave-5 completion at 7940.30 on 12-06-2015 and Pull Back Rally beginning
3- Whole correction in Bullish Flag Pattern formation
4- Last 11 sessions closing above Long Term Trend decider 200 Day EMA(today at 8214).
Conclusions from EOD chart analysis
As whole correction in Bullish Flag Pattern formation and last 11 sessions closing above Long Term Trend decider 200 Day EMA(today at 8214)therefore Long Term Trend turning up confirmation and emergence of correction completion strong signal at the bottom of correction at 7940.30 on 12-06-2015.
54 Sessions trading between 7941-8505
Nifty-EOD Chart (03-Jul-2015):- |
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1- 54 Sessions trading between 7941-8505
Conclusions from EOD chart analysis
54 Sessions trading between 7941-8505 and last Friday closing just below the top of this range at 8484.90,once valid break out of 8505 will mean strong blasting rally.
Inverted Head and Shoulders Pattern formations
Nifty-EOD Chart (03-Jul-2015):- |
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1- Inverted Head and Shoulders Bullish Pattern formations in last 31 sessions
Conclusions from EOD chart analysis
Bullish Inverted Head and Shoulders Pattern formations in last 31 sessions with its Neckline at 8490 and last Friday closing just below it at 8484.90, once valid break out of 8490 will mean strong blasting rally.
Conclusions (After Putting All Studies Together)
All Trends are as follows:-
1- Short Term Trend is up
2- Intermediate Term Trend is sideways which will be up above 8505.
3- Long Term Trend turned up after last 11 sessions closing above its decider 200 Day EMA(today at 8214).
As following patterns formations therefore strong blasting rally is expected:-
1- Whole correction from 9119.20 to 7940.30 is in Bullish Flag Pattern formation
2- Falling Trend line of correction broken out
3- Inverted Head and Shoulders Bullish Pattern formations in last 31 sessions
4- Long Term Trend turning up confirmations after last 11 sessions closing above its decider 200 Day EMA(today at 8214).
As above 4 Bullish developments therefore expected that finally 54 Sessions trading range (7941-8505) will be broken out above 8505 and strong Blasting rally will be seen in the coming week after all trend turning up.
If 'No' comes from Greece referendum today Mid Night then a down can not be ruled out next Monday but Nifty will not sustain at lower levels and finally rally will develop towards and above life time high(9119.20) after whole rally(5118.85-9119.20) correction completion at 7940.30 on 12-06-2015