Anticipated on 31st Jan
Happened:
NSE Midcap Index:
We stated earlier on 31January 2011: “…. We are convinced that this is a higher degree correction in form of wave 2 that can retrace anywhere between 38.2% to 61.8% of the entire move up from 3000 to 9800.Our first target is the area of previous 4th wave that comes in at 7250 and this also mark the zone for 38.2% retracement level. We do not expect any significant bounce back now before this level is achieved…” The chart above itself conveys what we want to say about the forecast. NSE Midcap gave a spike at 7220 on 10th Feb and reversed the very same day. It beautifully touched 38.2% level and reversed. This is the power of Fibonacci when applied correctly and combined with Elliott wave.
For now, it is difficult to say that the entire down move that started in December 2010 is complete or we still have to see further leg down till 6500 levels. A move above 8250 will confirm that an intermediate degree bottom is in place. Any move below 7400 will take this index further down till 6500 levels. For short term, we remain bullish and the down move on Friday as corrective pattern, confirmation of which is obtained by move above 7900 levels!
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I think we are in stage C of a super cycle (30 year)
ReplyDeleteDusty