Nifty: Astonishing alignment of Time Cycles, Channels, Momentum, Elliott wave & much more! by Ashish Kyal, CMT of Waves Strategy Advisors
We have read about alignment of stars, alignment of planets, equinox, eclipses and more.
These are universal systems following well defined Time patterns. Here we are not evaluating whether these alignment produces impact on stock markets. I am not an expert to comment on this but only a believer of linkages between Equinox and stock markets.
Going to the topic directly the below shows classical alignment of important technical indicators and Time cycles. Alignment is an integral part of universe and so is in stock market!
Indian equity marketsare touching life time highs and making headlines. Everyday there are some stocks leading index higher. But the big question to ponder upon is to understand whether this is indeed start of next bull trend or just another trap for late entrants?
In today’s morning research report “The Financial Waves short term update”our flagship product - daily Equity newsletter we have shown classical alignment of many basic and advanced technical studies – Time Cycles, Channels, Momentum divergence, Elliott wave countsall are synchronized together. Such synchronizations are a rare event which probably occurs once in a year. Below gives a brief overview:
Bottom Line: Nifty continued to move higher on the last day of March series. It is arriving near the cluster of Time Cycles, Channel resistance, Momentum divergences.
Nifty daily chart:
(Elliott wave counts, levels, other details are purposely removed from above chart)
Wave Analysis:
Following is published today morning in “The Financial Waves short term update”. See below the beauty of Technical alignment but let us just wait for prices to confirm:
Nifty continued to move higher and at one point broke above the resistance level of 6650 and touched 6670 levels but finally settling near 6640. Such movement cannot be ruled out on the expiry day and immediately following day i.e. today. We have observed reversals a day or 2 after expiry. We will not change our stand when the cluster of technical evidences are overwhelming and aligned together on the day of 1stApril. Following is the technical picture and such series of clusters were last seen during January 2013 top. However, price confirmation will be the key as mentioned earlier and unless we see a ……….. trend will be positive.
8 different technical indicators pointing to one thing– A classical alignment
1. 49 days Time Cycles:This is one of the most important daily Time cycles we have come across that has worked brilliantly for many months now. I have evaluated many cycles but the turning range as per this cycle is the most accurate so far………
2. 74 period Time cycles:The hourly chart shows 74 period Time cycle. This short term Time cycle also provides the turning dates after every 10 or 11 trading days. This is also due on ……. which is almost coinciding with ……. 2 very important Time cycles.
3. Daily and hourly RSI – Daily RSI has already reached important levels………
4. Important channel resistance:
5. Elliott wave structure:
6.Synchronization with USDINR
7.Breadth indicator – Advance Decline line
8.5 days of blue bar formation
In a nutshell, when so many technical parameters are aligned together does it mean to act now or wait for price confirmation? I think prices are supreme and is one parameter which has not confirmed so far. But we know what levels will bring this final ingredient of price in alignment with above.
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