Correction Continuation towards next 7 Supports
Technical Analysis,Research & Weekly Outlook
(Nov 02 to Nov 06,2015)
Nifty-EOD Chart (30-Oct-2015):- |
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1- 5118.85 on 28-08-2013(Wave-1 beginning after 'ABC' correction completion)
2- Wave-1(6415.25 on 09-12-2013)
3- Wave-2(5933.30 on 04-02-2014)
4- Wave-3(8626.95 on 04-12-2014)
5- Wave-4(7961.35 on 17-12-2014)
6- Wave-5(9119.20 on 04-03-2015 and 'ABC' correction beginning)
7- Wave-A(7940.30 on 12-06-2015)
8- Wave-B(8654.75 on 23-07-2015)
9- Wave-C(7539.50 on 08-09-2015)
10- Pull Back Rally completion(8336.30 on 26-10-2015)
11- Pull Back Rally correction is on with recent bottom formation at 8044.40 on 30-10-2015
Waves structure of correction
Nifty-EOD Chart (30-Oct-2015):-
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1- Wave-5 completion at 9119.20 on 04-03-2015 and Wave-A of 'ABC' correction beginning after life time high formation)
2- Wave-A(7940.30 on 12-06-2015)
3- Wave-B(8654.75 on 23-07-2015)
4- Pull Back Rally completion(8336.30 on 26-10-2015)
5- Pull Back Rally correction is on with recent bottom formation at 8044.40 on 30-10-2015
6- Long Term Trend is sideways after Nifty hovering around its decider 200 Day EMA(today at 8185) on 16-10-2015
Waves structure of Pull Back Rally
Nifty-EOD Chart (30-Oct-2015):-
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1- 7539.50 on 08-09-2015(Wave-1 beginning after 'ABC' correction completion)
2- Wave-1(8055.00 on 18-09-2015)
3- Wave-2(7691.20 on 29-09-2015)
4- Wave-3(8244.50 on 12-10-2015)
5- Wave-4(8088.60 on 13-10-2015)
6- Wave-5(8336.30 on 26-10-2015 and correction beginning)
7- correction continuation with recent bottom formation at 8044.40 on 30-10-2015
Fibonacci Retracement levels of on going correction
Nifty-EOD Chart (30-Oct-2015):-
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Last 17 sessions intraday charts analysis
Nifty-Intra Day Chart (Oct 05 to Oct 30,2015):-
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1- 27 Sessions trading range forcefully broken out on 05-10-2015
2- 15 sessions trading between 8090-8336 from 06-10-2015 to 29-10-2015
3- 15 Sessions trading range broken down on 30-10-2015
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Short Term Trend turned down in on going correction
2- Intermediate Term Trend is up
3- Long Term Trend is sideways after Nifty hovering around its decider 200 Day EMA(today at 8185) for last 17 sessions.
That Wave-1 which started on 28-08-2013 from 5118.85 gained 4000 points and completed at 9119.20 on 04-03-2015 after many times new life times high formation. 'ABC' correction started which has given its completion signals at 7539.50 on 08-09-2015 from where Pull Back Rally begun. Now its correction is on with recent bottom formation at 8044.40 on 30-10-2015 and till now no indication of its completion. Fibonacci Retracement levels of on going correction are as follows:-
1- 13.0%- 8232(corrected)
2- 23.6%- 8148(corrected)
3- 27.0%- 8121(corrected)
4- 38.2%- 8031(Crucial)
5- 50.0%- 7937(Crucial)
6- 61.8%- 7843(Crucial)
7- 70.7%- 7772
8- 76.4%- 7727
9- 78.6%- 7710
10-88.6%- 7630
Nifty traded 27 Sessions between 7540-8092 from 24-08-2015 to 01-10-2015 and this range was forcefully broken out on 05-10-2015 which was a strong signal of 'ABC' correction completion at 7539.50 on 08-09-2015. Nifty remained sideways between 8090-8336 in 15 sessions and also closed 7 days above Long Term Trend decider 200 Day EMA(today at 8185) which was almost confirmation of strong rally after all trend turning up but this range was also forcefully broken down last Friday and Nifty closed within 27 sessions range at 8065.80 . It is clear that 2 sideways trading ranges of last 44 sessions are giving lower levels supports and higher levels resistances also therefore Nifty will be understood sideways within it between 7540-8336.
As downward momentum is on after 15 sessions range breaking down last Friday therefore correction continuation will be seen according to above mentioned Fibonacci Retracement levels towards following supports in next week:-
1- Supports between 8033-8067
2- Supports between 7940-7971
3- Supports between 7874-7908
4- Supports between 7837-7865
5- Supports between 7804-7830
6- Supports between 7695-7726
7- Supports between 7545-7582
Bearish Engulfing weekly candle formation last Friday and no signal of correction completion yet therefore until complete consolidation will not develop near about above mention levels till then correction completion will not be considered and much deeper correction will be seen only after failing to get supports at above levels.