Nifty has been drifting lower since past 11 days and has
finally showed some buying attempt from the zone of 7900 – 7915 which was the
lows made on 21st November 2016
Important thing to note is that majority of the Global
markets have been moving in a stable environment with a positive bias when
Nifty drifted lower. Such independent movement makes the trend susceptible to
sudden reversal which we are witnessing today.
Let us try to see the broader Time cycles that has worked
very well in the past along with Elliott wave counts:
There are times when predictability is low as it is
difficult to decipher the pattern under formation when we are in middle of a
correction but when any pattern is near its completion the forecasting ability
increases drastically. In above chart we can clearly see how Time cycles have been combined along
with Elliott wave counts. Time Cycles continue to be in sell mode
atleast till end of January and the pattern is also getting clearer.
We are in final stages of completing the medium term uptrend
started in late February 2016 post which the final panic selloff will kick in
which will ensure majority are out of the markets just before a big BULL TREND. And all this action is not
going to take much time since we have already consumed desired number of months
or rather years of correction.
In simple terms we can expect volatile market movements over
next few months in up down type of action
before the next strong trend starts. But during this up down scenario short
term opportunities can be explored with strict stoploss and taking profits off
the table as soon as possible. Look at the short term - intraday trading
opportunities given in our daily Nifty report:
On morning of 26th December 2016 we mentioned
that “Short positions can be created on move below 7940
with day's high as stop and target of 7900." BANG ON! Nifty broke below 7940 and moved below
target level 7900 on 26th itself.
On 27th December
i.e. today morning we mentioned the following “Long positions can be created only on move above 7960 with 7920 as stop
and target of 8000”
Happened: Nifty moved above 7960 and
quickly crossed the target of 8000 as well on upside in today’s session.
To know what is the next probable path markets can follow
along with detailed analysis and internal Elliott wave counts, detailed Time
cycles on Nifty, stocks, Bank Nifty
subscribe to “The Financial Waves short
term update” and get free access into Monthly
research report as a New Year offer
that ends in next 5 days along with trading
strategy. January 2017 is going to bring in some huge volatility and the time
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