Bank Nifty: How to determine the direction using Elliott wave & Fibonacci?

Bank Nifty: How to determine the direction using Elliott wave & Fibonacci?

By Waves Strategy Advisors. For more information visit www.wavesstrategy.com

In the recent up move in the market, many of the sectors participated. In Banking Index we have observed rally across the Private Banks and PSU Banks. The momentum was so strong during the up move because of which many would have been convinced about the rally. However, from last 5 days we are witnessing same momentum on downside, which has brought prices on the crucial level.

Many of the experts are expecting the current down move in Bank Nifty as a profit booking. However, technical charts are showing different scenario over the past few days.

In today’s morning trade even, Bank Nifty was trading at negative note. So, will prices bounce back from the current level or it has started correction of the previous up move??

On 8^th November, 2013we have published Research Report on Bank Nifty, the part of which is shown below:

Bank Nifty Daily chart: as of 8th November morning

Waves Analysis:

As shown in daily chart, prices have retraced almost 61.8% of the entire down move from 13500 to 8300. We have observed that during the up move from 9500 to 11700, only 2 red bars occurred but currently from last 4 days prices have given negative close and formed 4 consecutive red bars. The above observation is based on the bar technique. However, break of important levels on downside which is placed near ……… will provide clear short term trend ahead.

As per wave perspective, any move below……….where channel support is placed will indicate that minor wave b of intermediate wave (B) completed at 11700 and start of next leg on downside in form of minor wave c. This minor wave c should come at least towards……….

The above is the part of “The Financial Waves STU”which we publish on daily basisbefore market opens. Along with Daily charts we have shown 120 mins chart which exhibits5 negative divergence in price ROC. To know the next major move in Bank Nifty as well as stocks which are on the verge of providing good trading opportunity, subscribe to “The Financial Waves STU”. For more details please visit: http://www.wavesstrategy.com/index.php/store.html