While trading or investing in
Financial Markets, price as well as Time plays an important role. If timing is
right then one can make most from the trend however wrong timing can lead to
emotional and financial stress. Hence it becomes important to analyze the
particular asset class with advanced studies likes Elliott wave theory, Neo wave and Time Cycles.
Below we have shown daily chart
of Bank Nifty which was shown in “The
Financial Waves Short Term Update” published in today’s morning. Here
we can see that the low formed in February 2016 was due to the Time Cycle of
117 days which is also close to the 108 days Hurst's Time Cycles. Now again
this Time Cycle is due in the second week of August 2016, so what Elliott wave pattern and Time Cycles suggest for Bank Nifty ahead?
Bank Nifty daily chart: (Part of research shown from “The Financial Waves Short Term Update”)
Wave analysis:
From last few
weeks we have been witnessing mixed performance among banking stocks. Private
Banks has continued to move in consolidation whereas PSU banks have been
outperforming the overall market and has showed sharp rise in last few weeks.
Bank Nifty has showed V shaped recovery post forming low at 16950 level on 24th
June 2016. The up move has managed to take out the previous pivot high of 18050
level, however post that it has failed to generate the strong momentum and
consolidation is ongoing from last few days. This suggests us to look at the
medium term structure.
The daily chart
indicates that from the lows of 13400 formed in the end of February 2016 prices
have continued to rise however the entire rally is corrective in nature. As per
wave perspective, prices are in minor wave ….. of third
standard correction pattern. This suggests that either Flat correction or
Triangle pattern is under formation. So as per this wave counts still sideways
to negative action is left in this index.
Time Cycle of 117 days: In above chart we can see that
Time Cycle of 117 days is working well to capture the bottoms. As per this time
cycle now next bottom is due in the second week of August 2016 and as of now
prices are trading at 3/4th phase of cycle and hence upside momentum
from hereon should ...............
We have also
shown 60 mins chart with internal wave count in original report which has been
removed purposely from this free article section.
Also understand
cycles can keep changing and one has to tweak it based on the latest price
action. Time cycles helped us to capture a major low in early March 2016 when
majority had given up on Equity markets and now everyone wants to buy stocks at
much higher levels. Humans have tendency to herd and stock markets clearly reflects
this herding behavior. Such behavior and emotions of Greed, Fear results into
repetition of patterns again and again.
We, at Waves
Strategy Advisors try to work with probabilities and use Time cycles to predict
the probable Elliott wave pattern a stock or index might follow. Trading and
investing is all about probabilities but sticking to time proven techniques
have helped us to be on right side of the trend more number of times which is
sufficient to be profitable on net basis. Many would look only at short
duration to judge the validity of success or failure of any theory but our many
years of experience has resulted into application and combination of Time cycles with Neo wave as one of the most powerful
techniques that one can come across.
Attend Most Advanced Technical analysis training -
Combining Time cycles with Neo wave - Advanced Elliott wave to forecasts the market from trading and
investment perspective. Get free research report for a month to see its
application as it develops in real time and post your questions on our
Discussion Forum post training to keep learning the application of the same.
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