Elliott view
Sensex
Daryl Guppy Moving average method is very interesting to watch
This method uses a cluster of short term moving averages and cluster of long term moving averages
Whenever all the short term moving averages move above each and every long term moving average one can initiate long position and whenever each and every short term moving average moves below all long term moving averages, a short can be initiated as it indicates reversal in trend
Looking at the Sensex chart above requires little explanation and it is for the first time since March 09 that all short term moving averages have moved down below long term moving averages
Also please note that how Long term moving averages cluster together after which major trend reversals happen
Elliott Perspective
Elliott wave counts shows an impulsive down
This counting does not looks good from aesthetic point of view but it is an acceptable count where wave 3 and wave 5 are exactly equal
It is difficult to say at this point whether we completed wave A down or it is just wave 1 of A. Only time will help us to clarify this
The top on 17th at 16480 is likely completion of wave 2 / B up
In our previous blog we mentioned if prices rally then 16500 should provide excellent opportunity to go short, prices touched 16480 and reversed
This offers very good place to initiate shorts with stop loss of 16481!
Caution: Do not be surprised, if we see very steep impulsive move down from here in coming weeks with major supports failing
This method uses a cluster of short term moving averages and cluster of long term moving averages
Whenever all the short term moving averages move above each and every long term moving average one can initiate long position and whenever each and every short term moving average moves below all long term moving averages, a short can be initiated as it indicates reversal in trend
Looking at the Sensex chart above requires little explanation and it is for the first time since March 09 that all short term moving averages have moved down below long term moving averages
Also please note that how Long term moving averages cluster together after which major trend reversals happen
Elliott Perspective
Elliott wave counts shows an impulsive down
This counting does not looks good from aesthetic point of view but it is an acceptable count where wave 3 and wave 5 are exactly equal
It is difficult to say at this point whether we completed wave A down or it is just wave 1 of A. Only time will help us to clarify this
The top on 17th at 16480 is likely completion of wave 2 / B up
In our previous blog we mentioned if prices rally then 16500 should provide excellent opportunity to go short, prices touched 16480 and reversed
This offers very good place to initiate shorts with stop loss of 16481!
Caution: Do not be surprised, if we see very steep impulsive move down from here in coming weeks with major supports failing
