Nifty: Power of Fibonacci ratios, see how accurately it is working!

Below research shows power of Fibonacci ratios especially 76.4% which we have identified as working extremely well on Nifty. It clearly shows application of Neo wave along with Fibonacci and how it helped me to forecast the target around 10320 levels just before the big down move happened.

Following was published in our daily research report – The Financial Waves short term update on 5thFebruary 2018. Look at the below chart and the forecast done near 10320 levels based on Fibonacci retracement of the entire wave g.

Nifty 60 mins chart: (shown in morning on 5th February)

Happened:

Elliott Wave analysis:

Following was published on 5th February 2018 before the collapse-

In previous update we mentioned that “introduction of Capital gains is going to result an impact which is not yet discounted maybe due to artificial support. Trade carefully as the swings can still be big over next few days! ….break below 10878 will be strongly bearish!” BANG ON!

We have been accurate in pointing out that the move seen on the Budget day can be an artificial support and markets are yet to discount it. So, the Budget acted as a catalyst in the already weak market. Above that DJIA – US major equity index cracked more than 650 points in single session which was not seen in years. Now everyone will suddenly start talking about bond yields going higher which was already rising over past few weeks. People are still not focusing on currency markets that have been sending across warning signs even before Budget that I have been talking about all the while. So there have been enough warning signs and we concluded our wave g at the highs on the Budget day itself.

Now looking at the violent nature of the fall there is high probability that a very important top might be in place. A euphoric rise getting culminated by equally fast reversal can be dangerous as lot of long positions are stuck near the highs and there is not much shorts build up since the reversal was dramatic.

Finally, Nifty cracked by more than 250 points. I am saying finally because this will bring back sanity to markets. You might have seen everyone on the street has started giving stock tips irrespective of any basis. Greed – one part of emotion had been in power for way too long and made people lethargic and complacent. A correction is important to ensure sanity returns and necessary home work has to be done before taking any positions. Case in point – You should not be surprised or rather shocked to see sharp correction. We were expecting a reversal anyways.

In my latest webinar you can see the reasons why this topping was imminent – Nifty crash post Budget? Is a top in place?

On hourly charts, you can see that prices have probably completed the entire rise and is now retracing this towards 76.4% levels which is at 10320. It is best to avoid catching a falling knife and trading in direction of the trend as long as Friday’s Gap area is protected. This week’s price action is going to be important and we will be closely seeing if it is indicating a bigger degree correction on downside.

Happened: The above was published just before the crash from 11000 to 10276 levels. This simply shows power of Advanced Elliott wave when applied along with Fibonacci retracement and projections.

So, what is next from here? Are we headed for another crash and is it just the beginning?

To know what is next from here subscribe to “The Financial Waves short term update” the daily research report that shows detailed analysis on Nifty, Bank Nifty and stocks. Also subscribe annually and get access to the monthly research report as a special offer for today! Visit Pricing page

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