Strongest indications of Wave-C formation to move Nifty towards and below 7511.10
Technical Analysis,Research & Weekly Outlook
(Sep 07 to Sep 11,2020)
Nifty-EOD Chart Analysis
(Average,Trendline & Stochastics)
Nifty-EOD Chart (04-Sep-2020):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-A completion at 7511.10 on 24-03-2020 and Wave-B beginning
2- Wave-c of Wave-B completion indications with recent top formation at 11794.3 on 31-08-2020
3- Wave-B Trend line at 11470
4- Long Term Trend decider 200-Day SMA is today at 10808
5- Stochastic-%K(5) is at 31.28 & %D(3) is at 33.44
Conclusions from EOD chart analysis
(Average,Trendline & Stochastics)
Wave-B correction is very much on after its trendline at 11470 broken down on 31-08-2010 and no indication of its completion yet.
As both lines of Stochastics are moving down and not reached into Over sold zone therefore correction continuation is expected.
Long Term Trend decider 200-Day SMA is today at 10808 and finally sustaining it beyond will confirm the length of on going correction and life of Wave-B.
Nifty-EOD Chart Analysis
(Bollinger Band & MACD)
Nifty-EOD Chart (04-Sep-2020):-
Technical Patterns and Formations in EOD charts
1- Down moves towards lower Band
2- Slipped below 20 Day-SMA
3- MACD intersected Average line downward.
Conclusions from EOD chart analysis
(Bollinger Band & MACD)
As Nifty is moving towards lower Band in Bollinger Band and slipped below 20 Day-SMA also therefore indications of more down moves.
MACD line intersected Average line downward is indicating Short Term Bearish trend formation.
Nifty-EOD Chart Analysis
(Fibonacci retracement levels)
Nifty-EOD Chart (04-Sep-2020):-
Technical Patterns and Formations in EOD charts
1- 13.0%-11237
2- 23.6%-10783
3- 27.0%-10637
4- 38.2%-10157(Crucial)
5- 50.0%-9652(Crucial)
6- 61.8%-9147(Crucial)
7- 70.7%-8765
8- 76.4%-8521
9- 78.6%-8427
10-88.6%-7999
Conclusions from EOD chart analysis
(Fibonacci retracement levels)
Correction has been started in previous week which may be deeper also therefore following levels should be watched for halting of down moves and Pull back rally from there.
Conclusions
(After Putting All Studies Together)
1- Long term trend is up.
2- Intermediate term trend is up.
3- Short term trend is has turned down in previous week.
Following lines were told on 29-08-2020 in "Watch 7 levels for deeper correction beginning confirmations ":-
As Wave-B is more than 5 months old therefore generating a signal of Wave-B time-wise completion. Weekly Stochastics is also showing negative divergence in Overbought zone hence suggesting that Wave-B is well riped for correction which may be deeper also.
Correction started from first sessions of previous week through 406 points crash from higher levels and that correction remained continued till last sessions of previous week and Nifty closed near the lowest of the week.
5th and last supports between 11290-11330 was updated in previous week and Nifty formed previous week lowest within it at 11303.6 last Friday. Next supports below it are as follows which should be watched because correction continuation is expected towards following supports in the coming week/weeks:-
1- 11166-11218
2- 11086-11114
3- 11034-11060
4- 10880-10927
Following negative signals have been generated after 406 points crash from higher levels;-
1- Long Bearish Engulfing candle formation on EOD chart on 31-08-2020.
2- Long Bearish Engulfing candle formation in previous week on Weekly chart.
3- Wave-B Trend line at 11470 has also broken down and previous weekly closing was below it at 11354.40 therefore generated strong indication of Wave-B completion.
As following developments also therefore it seems that Wave-B has been completed at 11794.25 on 31-08-2020 and strongest indications of Wave-C formation to move Nifty towards and below the origin level of Wave-B(7511.10) in the coming months:-
1- Wave-B took more than 5 months therefore signalling its time-wise completion.
2- Wave-B gained 4283.15 points and retraced more than 86% of previous fall therefore signalling its Price-wise completion also.