The rally from 7893 has taken everyone by surprise and where does it go from here?
1. The rally has retraced the fall from 8968 to 7893 in faster time. This indicates it is an impulse wave started from 7893.
2. The rally has consumed 9 weeks so far.
3. If it is a fresh impulse some decent correction is due as a form of consolidation before the up move resumes. Lower levels are 8724, 8567, 8437.
4. I have plotted the rise as a 3 wave corrective up move but more likely it would play out as a 5 wave impulse up move.
The 1st wave was very clear 7893-8461, 2nd wave corrected till 8327, third to fifth wave is not very clear so I took the rise as an a-b-c rise.
Either which ways a correction to 8724 seems to be on the cards. There are negative divergences playing out.
A secondary possibility is this is A B C corrective up move and we may revisit 7800. Now all these are just numbers how does one invest based on them?
Buy 50 pc of intended quantity between 8500 and 8700. The broader market is showing signs of correction.
1. The rally has retraced the fall from 8968 to 7893 in faster time. This indicates it is an impulse wave started from 7893.
2. The rally has consumed 9 weeks so far.
3. If it is a fresh impulse some decent correction is due as a form of consolidation before the up move resumes. Lower levels are 8724, 8567, 8437.
4. I have plotted the rise as a 3 wave corrective up move but more likely it would play out as a 5 wave impulse up move.
The 1st wave was very clear 7893-8461, 2nd wave corrected till 8327, third to fifth wave is not very clear so I took the rise as an a-b-c rise.
Either which ways a correction to 8724 seems to be on the cards. There are negative divergences playing out.
A secondary possibility is this is A B C corrective up move and we may revisit 7800. Now all these are just numbers how does one invest based on them?
Buy 50 pc of intended quantity between 8500 and 8700. The broader market is showing signs of correction.
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