Bullish Rally continuation with only a Short Term correction possibility
Technical Analysis,Research & Weekly
Outlook(May 31 to Jun 04,2021)
Nifty-EOD Chart Analysis
(Waves structure)
Nifty-EOD Chart (28-May-2021):-
Technical Patterns and Formations in EOD charts
1- Corrective Wave-C completion and Impulsive Wave-1 beginning from 7511.10 on 24-03-2020
2- Impulsive Wave-1 completion at 11794.30 on 31-08-2020
3- Corrective Wave-2 completion at 10790.20 on 24-09-2020
4- Impulsive Wave-3 completion after new life time top formation at 15431.8 on 16-02-2021
5- Corrective Wave-4 completion at 14151.4 on 22-04-2021
6- Impulsive Wave-5 continuation with recent high and new life time top formation at 15469.65 on 28-05-2021
Conclusions from EOD chart analysis
(Waves structure)
Impulsive Wave-5 of that Waves structure continuation which started from 7511.10 on 24-03-2020. As previous life time top of Wave-3(15431.8) broken out and new life time top formation at 15469.65 on 28-05-2021 as well as no selling patterns formation on EOD charts therefore Impulsive Wave-5 will remain continued.
Nifty-EOD Chart Analysis
(Wave-4 Wave structure)
Nifty-EOD Chart (28-May-2021):-
Technical Patterns and Formations in EOD charts
1- 73 sessions Bullish flag upward broken out confirmations
2- Impulsive Wave-3 completion at 15431.8 on 16-02-2021 and Wave-A of Wave-4 beginning
3- Wave-A completion at 14467.8 on 26-02-2021
4- Wave-B completion at 15336.3 on 12-03-2021
5- Corrective Wave-C of Wave-4 completion at 14151.4 on 22-04-2021 and Impulsive Wave-5 beginning
6- Impulsive Wave-5 continuation with recent high and formation at 15469.65 on 28-05-2021
Conclusions from EOD chart analysis
(Wave-4 structure)
As 73 sessions "ABC" correction of Wave-4 was with Bullish flag formation and deeper correction like 2020 was not seen despite too much worse condition of Corona in India therefore upward broken out of Bullish Flag was seen after Wave-4 completion at 14151.4 on 22-04-2021.
Impulsive Wave-5 formations confirmations with 73 sessions like big trading range broken out therefore it will remain continued in the coming weeks/months. As Short to Intermediate Term corrections are the nature of Bull markets and those will be seen time to time but rally will remain continued.
Nifty-EOD Chart Analysis
(MACD & Stochastic)
Nifty-EOD Chart (28-May-2021):-
Technical Patterns and Formations in EOD charts
1- 73 sessions Bullish flag upward broken out confirmations
1- Stochastic %K(5) is at 91.18 & %D(3) is at 88.42
2- Stochastic- %K(5) line has intersected %D(3) line upward and both lines rising in Overbought zone
3- MACD line is above Average line and its both lines are rising in positive zone.
Conclusions from EOD chart analysis
(Stochastic & MACD)
As last 6 sessions continuous up moves and any correction not seen therefore Short Term Indicator Stochastic has turned completely Overbought and ready for Short Term correction but clear selling patterns have not been seen on Eod charts yet therefore let it happen first then it will be seen.
As rally continuation and in MACD Indicator both lines are moving upward in positive zone after MACD line upward intersection of Average line therefore it is showing up trend and rally continuation possibilities.
Conclusions
(After Putting All Studies Together)
All the trends are up,impulsive Wave-5 continuation and no indication of its completion on EOD charts.
Indian markets have shown huge strength because any type of Wave-4 big correction was not seen despite devastating Corona condition in India therefore Indian markets will be understood completely Bullish and impulsive Wave-5 Rally will remain continued.
Although Short Term Indicator Stochastic has turned completely Overbought and ready for Short Term correction but no big indication of any correction on EOD charts except Doji Candle formation last Friday. Let clear selling patterns develop and Nifty to sustain below last Friday lowest(15395) then Short Term correction will be considered and now it is on cards also because sentiment is too much heated after last 26 sessions strong rally.