17226 Will confirm the size,life and length of expected correction
Technical Analysis,Research & Weekly Outlook
(Aug 08 to Aug 12,2022)
Nifty-EOD Chart Analysis
(Corrective Waves)
Nifty-EOD Chart (05-Aug-2022):-
Technical Patterns and Formations in EOD charts
1- Impulsive Wave-5 completion after new life time top formation at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC" correction beginning with Double Zig-Zag pattern formation
2- Wave-A completion at 16410.20 on 20-12-2021
3- Wave-B completion at 18351.00 on 18-01-2022
4- Wave-C bottom formation at 15671.5 on 08-03-2022
5- Wave-X completion at 18114.70 on 04-04-2022
6- Wave-A completion at 15735.80 on 12-05-2021
7- Wave-B completion at 16793.80 on 03-06-2022
8- Wave-C completion at 15183.4 on 17-06-2022 and Wave-A beginning
9- Wave-A continuation with recent top formation at 17490.7 on 04-08-2022
10- Last 5 Sessions sideways actual trading between 17226-17490
Conclusions from EOD chart analysis
(Corrective Waves)
Impulsive Wave-5 of that Waves structure completed after new life time top formation at 18604.50 on 19-10-2021 which begun through its impulsive Wave-1 from 7511.10 on 24-03-2020. Now "ABC" correction of this Waves structure(7511.10-18604.50) is in continuation with Double Zig-Zag pattern formation and no confirmation of its completion yet on EOD charts.
Now Wave-A of correction is in continuation after on going correction bottom formation at 15183.4 on 17-03-2022. Wave-A recent top formation at 17490.7 on 04-08-2022 and no confirmation of its completion yet but last 5 Sessions sideways actual trading between 17226-17490 and finally sustaining beyond this range will confirm its life and length.
Nifty-EOD Chart Analysis
(Stochastic & MACD)
Nifty-EOD Chart (05-Aug-2022):-
Technical Patterns and Formations in EOD charts
1- Wave-C completion at 15183.4 on 17-06-2022 and Wave-A beginning
2- Wave-A continuation with recent top formation at 17490.7 on 04-08-2022
3- Stochastic- %K(5) line has intersected %D(3) line downward and its both lines are falling in Over bought zone.
4- Stochastic:- %K(5)- 82.11 & %D(3)- 89.59.
5- Stochastic is showing negative divergence
6- In MACD- MACD line has intersected Average line upward and its both lines are rising in positive zone.
7- MACD(26,12)- 554.13 & EXP(9)- 453.48 & Divergence- 100.65
Conclusions from EOD chart analysis
(Stochastic & MACD)
Wave-A begun from 15183.4 on 17-06-2022 and now is in continuation with recent top formation at 17490.7 after gaining 2307.3 points. Present positions of Short Term indicators are as follows:-
1- In Stochastic indicator %K(5) line has intersected %D(3) line downward and its both lines are falling within Over bought zone. As this indicator is showing negative divergence also therefore indicating Short Term correction beginning strong signals.
2- In MACD indicator MACD line has intersected Average line upward and its both lines are rising in positive zone therefore showing upward trend formations and suggesting up moves continuation in the coming sessions.
Nifty-Last 5 Sessions
intraday charts analysis
Nifty-Intra Day Chart (Aug 01 to Aug 05,2022):-
Technical Patterns formation in last 5 Sessions intraday charts
1- More than 6 hours selling between 17412-17490 on 04-08-2022 & 05-08-2022
2- Consolidation(supports) between 17226-17327 from 01-08-2022 to 03-08-2022
3- Most time trading in last 5 Sessions between 17226-17490
4- Last 5 Sessions actual trading between 17226-17490
Conclusions from 5 Sessions intra day chart analysis
As last 5 Sessions most time trading between 17226-17490 With closing within 57 points between 17340-17397 therefore it will be understood that on going rally has been slowed down at the top of rally.
Above mentioned supports and resisatnces are lying within last 5 sessions trading range(17226-17490) which are equally stronger also therefore expected that Nifty will trade and prepare for next Short to Intermediate Term Trend within this range and finally sustaining beyond this range will confirm it hence it should be firstly watched in the beginning of next week for its confirmations.
Nifty-Intra Day Chart Analysis
(05-Aug-2022)
Nifty-Intra Day Chart (05-Aug-2022):-
Technical Patterns formation in today intraday charts
1- Selling between 17412-17474
2- Sideways trading in last 2 hours between 17349-17418
3- Whole day actual trading between 17349-17474
Conclusions from intra day chart analysis
Although firstly up moves after positive opening but more than 4 hours selling was seen between 17412-17474 therefore Nifty slipped and traded in negative zone also.
As sideways trading in last 2 hours between 17349-17418 and minor supports was also seen at lower levels therefore firstly sustaining beyond this range should be watched in the beginning of coning week for next decisive moves beginning amid down moves expectations below last Friday lowest(17349).
Conclusions
(After putting all studies together)
All the trends are up. Waves structure which begun through its impulsive Wave-1 from 7511.10 on 24-03-2020 completed at 18604.50 on 19-10-2021 and corrective Wave-A of "ABC" correction started with Double Zig-Zag pattern formation. Now Wave-A of "ABC" correction is in continuation with Double Zig-Zag pattern formation and no confirmation of its completion yet on EOD charts. As on going "ABC" correction is more than 9 months old and its Wave-A has sustained above Long Term Trend decider 200-Day SMA(today at 17002) for the last 6 sessions therefore showing signals of on going "ABC" correction completion at 15183.4 on 17-06-2022.
Although MACD indicator is showing upward trend formations and suggesting up moves continuation but Stochastic indicator is indicating strong signals of Short Term correction beginning. As last 5 Sessions sideways actual trading between 17226-17490 with both lower levels supports and higher levels resistances therefore Nifty will firstly trade and prepare for next Short Term moves within this range and finally sustaining beyond this range will confirm it hence should be firstly watched in the coming week for its confirmations.
As higher levels good selling in last 2 sessions therefore expected that firstly down moves will be seen towards the lowest(17226) of last 5 sessions trading range in the beginning of next week and finally sustaining it beyond will confirm deeper cooection beginning or is cooection completion. It should be kept in mind that sustaining below 17226 will mean Wave-A(15184-17490) correcion beginning to correct its 2307 gains. As correction may be deeper also therefore firstly sustaining beyond 17226 should be watched in the coming week to confirm the size,life and length of expected correction.
