Rally Continuation above the top of on going Rally
Technical Analysis,Research & Weekly Outlook
(Aug 08 to Aug 12,2016)
Nifty-EOD Chart (05-Aug-2016):- |
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1- Impulsive Wave-1 beginning after bottom formation at 6825.80 on 29-02-2016
2- Wave-1(7992 on 28-04-2016)
3- Wave-2(7678.35 on 06-05-2016)
4- Wave-i of Wave-3(8294.95 on 07-06-2016)
5- Wave-ii of Wave-3(7927.05 on 24-06-2016)
6- Wave-iii of Wave-3 continuation with recent top formation at 8711.30 on 01-08-2016
7- Short Term Correction between 8518-8711 in previous week
Conclusions from EOD chart analysis
Impulsive Wave-iii of Wave-3 continuation with recent top formation at 8711.30 on 01-08-2016) and sideways correction was seen between 8518-8711 in previous week.
Intra Day Chart Analysis(05-08-2016)
Nifty-Intra Day Chart (05-Aug-2016):-
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1- Consolidation between 8626-8652
2- Whole day actual trading between 8615-8689
Conclusions from intra day chart analysis
63 Points sharp up in first minute after gap up opening and higher levels consolidation at 0.90% higher levels as well as closing at higher levels of the day after sudden sharp recovery in last half hour are strong indications of rally continuation of on going rally.
Conclusions (After Putting All Studies Together)
Trends of Nifty are as follows:-
1- Long Term Trend is up.
2- Intermediate Term Trend is up.
3- Short Term Trend is sideways between 8518-8711 for the last 9 sessions.
Following lines were told on 01-08-2016 in "Rally continuation Expectations":-
1- As Short/Intermediate Term Indicators have turned overbought therefore correction is very much due
2- on going Wave-iii of Wave-3 will remain continued in the coming week.
Correction was very much due and it was seen in previous week through sideways trading between 8518-8711 but on going Wave-iii of Wave-3 also remained continued and previous week closing was at the top of not only previous week top but also at highest of on goint rally. Although Nifty firstly slipped in previous 3 sessions but without intraday selling patterns formations and sufficiently good consolidation patterns were also seen in last 3 sessions therefore on going rally continuation is expected in the coming week above the top(8711.30) of on going Post Budget 2016-17 rally.