A perfect wave [iii] RALLY! As Anticipated!

Sensex

Explanation:

We mentioned in our previous blog that "This scenario calls for some substantial up movement to come in next week in form of wave [iii] of 5"

This is exactly how prices moved up in form of wave [iii] of final wave 5

The movement on Sensex have been quite smooth with no selling pressure yet. The momentum so far has been strong.

We do not want to call for a correection in this strong moving market but ride the trend till it proves to be terminating either by price confirmation or give some indication in momentum divergence.

Sensex rally of past few days has set in a perfect example of how strong wave iii movements can be and very much rewarding if predicted early. Many of the call option writers are in big trouble now as we have been stating in our previous writeups that writing options is not such a good strategy when vol is so low

We expect wave [iii] to last atleast till 20,000 levels. Market should give us a hint if it wants to take some other path. Enjoy the rally as long as it continues!