Friday, February 28, 2014

Forecasting Nifty using Elliott wave pattern! What’s next?

The below article highlights how forecasting can be done using Elliott wave and channel techniques along with Fibonacci ratios.
The research is taken from “The Financial Waves STU” published in the morning of 24th February 2014, which includes Nifty and 3 stocks. On 24th February 2014 morning we had shown the probable path Nifty should follow over short term when the index was quoting near 6150 levels.
Nifty 60 mins chart: ( Anticipated on 24th February, 2014)

Nifty 60 mins chart: (Happened today)
Wave Analysis:
On 24th February 2014 we mentioned that “As shown on 60 mins chart, prices are now in 2ndset of corrective pattern. We are showing one of the probable paths that prices might follow.This path is in sync with short term cycle which is due on 26th – 27th February. This cycle has worked very well since we have shown and over past few times it has formed……In short, we can now expect a move towards 6200 – 6240 over short term as long as 6060 is protected. Volatility can increase due to expiry in current week and we will be keeping a close tab on broader markets to further gauge …”
Happened: As expected, Nifty followed our mentioned path accurately. The above chart clearly reflects that. In the today’s morning session, prices made a high of 6274. Now, prices have also retraced 76.4% of the prior fall and time cycle is due which has worked very before. However there is no price confirmation for now but indicators are getting lined up together. Under such scenario it is important to wait for break of crucial levels for further direction. What should be the trading strategy from current levels? To know the next wave in Indian markets, subscribe to“The Financial Waves Short term update”. For more information, visit Pricing Page.

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