Friday, February 22, 2013

Nifty: Elliott wave analysis suggests next strong trend has started!!!


By Waves Strategy Advisors, For more information visit www.wavesstrategy.com or write to helpdesk@wavesstrategy.com
The fall of almost 100 points on Nifty yesterday might be a surprise to many but not to our readers as we made them aware of such scenario – infact the very prior day.
Read yourself what was mentioned in “The Financial Waves” research report on 21st February 2013 before equity markets opened in morning.
“An earnest advise to our readers is to trade in direction of trend and to follow strict stop loss methods in case trading is done against the major trend. A classic example is of Gold and Silver. Prices have been falling for more than a week and every rise has been short lived. We have been constantly mentioning this in our Commodity report and yesterday Gold and Silver prices were down by more than 2% & 3% respectively at one point of time. This simply shows that during powerful trends prices do not give respect to support levels. Human psychology work exactly the opposite way and we have a tendency to catch reversals. Similarly, Nifty for many months has moved within narrow range and has not given a strong trend in single direction. There will be tendency to catch reversals but if a strong trend on downside starts then we can expect a similar scenario can develop. A move of 100 points on Nifty which has now become a passé can be expected again. Time is running out for post pattern wedge implication i.e. prices should reach near …….. levels in next ………. days or less…”
Nifty 20 mins chart:
Nifty had a fall of almost a century yesterday after a long time. Prices made a low of 5844 and closed near it thereby forming a big red bar on downside. We mentioned in yesterday’s report itself that the fall of 100 points which has not been seen for quite sometime can be expected again and Nifty vindicated this in yesterday’s trading itself.
Prices reversed from 20 days Exponential moving average and the trend now remains firmly negative. We can now expect a move towards ………. very quickly
The selloff this time is not localized but is witnessed across the globe. Commodities including precious metals have been the first to start the fall, followed by base metals, rally in Dollar index and fall in major world equity markets by more than 1.5% yesterday. Such synchronized fall normally last long and result in strong trending moves. However, it is too soon to comment if the world markets have started collapsing before crucial levels are broken. Next few days of price action will provide vital information on world freely traded markets whether it is Equity, Commodity or Currency.
In short, Nifty can move towards ……………
Such trending opportunities do not come quite often. Do not miss the BIG move that we are expecting. Trade systematically and objectively using prudent risk management levels. For more information on how to subscribe write to us at helpdesk@wavesstrategy.com or call on +91 9920422202 / +91 22 28831358. For more information visit www.wavesstrategy.com

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