Correction Continuation after 1/2 Sessions Intraday Volatility
Technical Analysis,Research & Weekly Outlook
(Dec 14 to Dec 18,2015)
Nifty-EOD Chart (11-Dec-2015):- |
| Just click on chart for its enlarged view |
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 recent bottom at 7539.50 on 08-09-2015)
10- Sub Wave-5 of Wave-C continuation with recent bottom formation at 7575.30 on 11-12-2015
Nifty-Intra Day Chart (11-Dec-2015):-
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1- Mixed Patterns between 7661-7690
2- Down moves after uproar in Parliament but in Bullish Falling Channel
3- Support between 7576-7621
4- Whole day actual trading between 7576-7690
Conclusions (After Putting All Studies Together)
Detailed analysis of EOD Charts with patterns formations have already been updated in following previous weekly analysis topics:-
1- On 29-11-2015: "Bullish Flag Formation in last 9 months Correction suggesting Strong Rally"
2- On 06-12-2015: "7715 Will decide the Life of on going Correction"
Importance of 7715 was updated in previous weekly analysis topic with Neckline(7722) of 56 sessions Head and Shoulders pattern and both the levels were broken down in previous week as well as last 4 sessions closing below it therefore levels therefore emergence of some more down moves possibilities.
As whole 9 months correction from 9119.20 to 7539.50 in Falling channel with Bullish Flag formations and this pattern formation will remain valid up to near about 7119 therefore until Nifty will not slip below the Falling trend line of Flag till then expectations of fresh Rally above life time high(9119.20) will remain alive.
Wave-C is on with recent bottom at 7539.50 on 08-09-2015 and now its Sub Wave-5 continuation with recent bottom formation at 7575.30 on 11-12-2015. As no confirmation of on going correction completion yet therefore more down moves below Wave-C lowest(7539.50) is very much possible.
As some intraday supports at lower levels after Bullish Falling Channel formation last Friday therefore a bounce back is firstly expected from lower levels. All the European and US markets closed in deep Red last Friday,if in reaction such weakness reflects in Asian markets also tomorrow then Gap down markets will be seen in Indian markets. As Short Term indicators are oversold and some supports and consolidation patterns were seen last Friday therefore possibility of recovery from lower levels can not be ruled out but Pull back rally will be considered only after sustaining above 7691/7722.
Correction is on and finally its continuation is expected after some 1/2 sessions intraday volatility.