Wednesday, October 11, 2017

Nifty: How to combine Time cycles with Neo wave?

Nifty has been moving precisely as expected over past few months. We use advanced technical analysis concepts like Elliott wave, Neo wave and Time cycles.

Look at the below chart of Nifty when it was near the low when we published our bullish outlook and also showed the original Time cycles:

Nifty daily chart on 3rd October: showing Time cycles and Neo wave counts

Nifty daily chart: Happened so far:

Following is the research published on 3rd October 2017 in “The Financial Waves short term update”

We are re-visiting the 55 days Time cycle to see if the same can still be considered. If we consider the original 55 days cycle with the low formed on Demonetization day in November 2016 and stay with that then the low formed on 28th September is just a day after the cycle low. This clearly indicates that the original cycle is still very well intact and we are keeping a very close watch on this to see if the low can be protected over next few days or not. You can see my latest webinar explaining the same here - Nifty target achieved near 9700, Will it form short term low?

We have been prudent to turn bearish exactly at the right time thereby allowing us to capture the entire fall and now it is time to see if we the high of Friday near 9854 is broken which will be first positive indication.

As shown on 60 mins chart, (shown in actual research report) given the deeper retracement on upside in the form of wave d there is another possibility that the ongoing pattern can also complete in 5 legged Extracting triangle from the highs of 10145 instead of forming a 7 legged Diametric pattern. So we might have completed wave d at Friday high of 9854 and have started wave e on downside.

If this is indeed an Extracting triangle pattern than a low can be formed soon and prices might not break below 9687 formed on 28th September. BANG ON!

In short, we are keeping a close watch on price movement over next two days to see which levels are taken out from here on. Break above 9854 will be first sign of positivity which will prove validity of Time cycles.

Happened: After forming a low exactly a day after the cycle low, Nifty reversed on upside and protected the lows mentioned in 3rd October research. The low formed at 9687 was indeed protected and prices moved above 9854 and now touched the highs of 10067 levels in today’s session.
This simply shows how well one can capture the trend by following Time cycles with Neo wave analysis.

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