A couple of weeks back we gave first target for Sensex as around 16000. Prices made low of 15960 and turned! An amazing respect to expanding diagonal (Wave 5) lower trendline
We showed the path of Sensex on May 4th. Prices did move down exactly as anticipated but with overlapping formation. Also prices did move lower near time cycles as suggested
This overlapping formation could form nested 1-2,i-ii but the more time it is taking to go down in wave iii the lesser likely it becomes to be of this structure
A plausible alternative count is this leg as Wave A/1 in form of an expanding leading diagonal
As Sensex gives respect to 23.6% and 76.4 % retracement levels similarly, Sensex has an history of formation of Expanding structure.
Prices have been behaving exactly as we have been anticipating since past few weeks and expanding structure fits well looking at global markets due for upward correction as well.
Expect further bounce back or sideways action from here in next couple of days before next major leg begins. A confirmation will be obtained by any move below 16000!
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