Midcap and Smallcap indices are
crashing with sharp decline seen in Pharma stocks. This might come as a
surprise to majority of traders but Elliott wave and breadth indicator hinted
towards reversal.
Sharp decline in market leaders
is the preliminary sign of change in medium term trend. Movement on Nifty has
been in lock step fashion as per the monthly research report – The
Financial Waves Monthly update.
Nifty reversed after forming a
top near 9533 levels, overshooting the Gann
projected level by less than a percent. This Gann projection level of 9458
was shown in our Monthly research report.
Anticipated
on 4th April 2017 in monthly research report - Gann square of Nine Price projection Hurst’s
Time cycles:
Happened as of 4th May and path
ahead shown:
Happened as of 22nd May 2017:
The above
three charts clearly shows how precisely Nifty has moved as per Gann projected
levels, Neo wave pattern, Time cycles all combined together. Many might be looking at the news or other
fundamental data to identify the reason for sharp selloff in the Midcap and
Smallcap space and reversal in Nifty. But using the most advanced technical
analysis method we have been able to capture the move precisely irrespective of
event either in Global markets or in India.
Anticipated
in the monthly update of 4th April 2017 – “..looking at the overall trend so far
the best strategy to follow is the weekly bar method. Unless we see close below
the previous week low which is at 9024 the trend will remain positive. Also as
per Gann analysis method the next level to look forward to is 9458 which is
lying on the 180 degree angle. Path shown above looks like one of the
probabilistic outcome…” BANG ON!
Happened: Nifty moved precisely as per the
pattern shown in the monthly update on 4th April and can be seen
from second chart shown on 5th May 2017.
Anticipated in the monthly update on 5th
May 2017 - The path ahead shown on 5th May 2017 in second chart
has also worked out in synchronous fashion with the Gann projected level just
exceeding by a few percentage and then the reversal on Nifty, Midcap and
Smallcap indices. Following was mentioned in that report - Path Ahead: Nifty path ahead is
shown in figure 8. We can clearly see triple negative divergence so far which
confirms our apprehension of topping process is ongoing. There is a possibility
that we see one more push towards the level of Gann projection of 9458 but that
is not necessary. Since we are in matured stages of
rally one should stay alert in case the selling pressure intensifies over next
few days.
Happened: Nifty indeed moved higher to retest
the previous highs and reversed sharply as per the path shown from 9532 levels.
The
movement has been also accurate as per the short term pattern which is covered
in daily research report – The Financial Waves short term update. The above
research clearly highlights the fact that market moves are predictable using
Elliott wave pattern. We took a step forward and combined these advanced
techniques together to forecasts the path ahead.
If you still think Midcap and Smallcap are
crashing due to uncertainty related to Trump or Global markets, Think Again! US
index has recovered back but we continued to drift lower!!!
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technical analysis combined with Advanced concepts like Gann analysis, Elliott wave, Neo wave and Time cycles and see yourself
if we are headed for a crash post topping process is complete! For more details - Contact US or visit www.wavesstrategy.com
P.S.
- Trading based on news can be random but following the pattern is the
scientific approach...
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