A Look at the Longer Term Elliot Wave Chart

It has been a long time since we have looked at the big picture. Now, is a good time to look at this picture.

1. The up-move which started from 4532 in Dec'11 can be of 3 legs.

A - 4532 - 5629 = 1097 points

B - 5629 - 4770 = 859 points

C - 4770 - xxxx

where xxx can be 4770 + 1097 = 5867

                            4770 + 1.618* 1097 = 6544

                             4770 +2*1097 =  6964

                             4770 + 2.618* 1097 = 7641

The 1st target has been met and now the 2nd target seems likely. Targets beyond the 2nd target, let us ignore for the time being.

C -1 = 4770 - 6112 = 1342 points

C-2 = 6112 - 5477 = 635 points

C-3 in progress.

C - 3 can have targets of 6306, 6500.

All these are targets are negated below 5604.

What does this mean for Investors?

All dips are buying opportunities. A dip should materialize soon to 5850-5900 zone which should be a buying opportunity.

In my guest post for Subhankar in the mid-week, I will analyse the implications of the Political situation.