Sunday, April 18, 2010

Prolonged Ending Diagonal!

The rally in the Indian market since early Feb asks for looking at probable alternative wave counts
One of the highly probable scenario is we are still in the ending diagonal mode and final wave e ended on 7th April at 18048
This wave counts make wave c ending very near 0.618 times wave a and wave e = wave c at 18100. If wave e exceeds 18100 this will make wave c the shortest and we need to re - evaluate the wave counts
Corrective wave d is exactly equal to wave b
We do not rule out the possibility of ongoing uptrend to continue further as we have yet to wait for negative confirmation. Also our previously shown wave count as current rally being part of wave B of an expanded flat correction is also very much valid.
Time cycles also suggest a correction of current rally from early Feb is due and might start in next week
move below 17000 - 17150 would provide first negativity and any move below 16000 would confirm start of a bigger correction that we have been waiting for so long!