Likely BN has started its rally from 18824 lows & has an impulsive look- In today's session, let us get some retracement in the zone 19300-19350 where it should not overlap 19240 which is laxman rekha for me-otherwise I will have to do analysis again.
Trading Strategy Let us look for retracement of 38.2 % to 50% of the rally from 19000's lows to 19512 which comes to the zone 19300-19325-marks 38.2% retracement or 50% zone, which comes to 19250-19270 but should not overlap 19240- if this happens then BN will shoot upside for 19600 zones.
This retracement will be a good buying opportunity for further longs else I will have to come back again.
Regards, Abhishek H. Singh, CMT
Trade ist aktiv
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13:00 Hrs 19th Oct2016
Last Low@19371
As expected retracement in the zone 19300-19325 we are just close by. Likely expecting that zone to hold.
Trade ist aktiv
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13:41Hrs 19th Oct2016
Trading@19390 Latest Low@19322 Vow as expected it kissed the zone- Bang on Target
Trade ist aktiv
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13:56 Hrs 19th Oct2016
Trading@19415
It's the first leg up- Likely it will retrace some bit before resuming uptrend.
Trade ist aktiv
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13:58 Hrs 19th Oct2016
Likely low@19322 shall be holding for target zone 19600
Kommentare
deepen
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Bank nifty surprised as it did not complete wave v of C down. The last dip from 19884 is 3 waves. So all the moved from 10 Sept onwards are 3 waves and could form a triangle. Meaning wave C down never started and wave B could complete near the trendline of the highs at 19500 where we closed today. So if this is true we should resume the move down right away, else we are in an X wave that will retrace 61.8% of the entire fall since Sept up to 20000. Sustaining above 19500 increases the possibility of rising to 20000 on bank nifty futures. 19576 is 38.2% of the entire decline so far above which the case for 20000 would improve.
WaveTalks
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Leading Diagonal can take shape of 3-3-3-3-3 waves which likely is the case with Nifty & Bank Nifty - I am just excited as whatever pattern is it- It clicked in time to me -What matters most is -if you are correct how much you make & if you are wrong how much you lose.
deepen
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Bank nifty surprised as it did not complete wave v of C down. The last dip from 19884 is 3 waves. So all the moved from 10 Sept onwards are 3 waves and could form a triangle. Meaning wave C down never started and wave B could complete near the trendline of the highs at 19500 where we closed today. So if this is true we should resume the move down right away, else we are in an X wave that will retrace 61.8% of the entire fall since Sept up to 20000. Sustaining above 19500 increases the possibility of rising to 20000 on bank nifty futures. 19576 is 38.2% of the entire decline so far above which the case for 20000 would improve.
Boult2100
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Kudos! Abhishek. Perfect analysis. Just one query, why did you take 19512 (Yesterday's high) for retracement instead of 19570 (Today's high). Dont we take most recent low and high for retracement calculations?
WaveTalks
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Yeah, You are correct -I did the analysis before market -& had the high19512 - Market opened gap up@19571 but it was hardly any big move upside which would have given almost same 38.2% retracement zone with some band of leeway.
Boult2100
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Thanks! Yes, only 25 points difference. Don't you think that after correcting in perfect 5 waves pattern on daily charts. Wolf wave has already started with an upside target of 8980-9100 zone.
WaveTalks
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It could be- I am not denying -we all are looking upside so we need to be careful as when most of us turn bullish -Market takes a U-turn exactly at that moment. Let us take one step at a time as we all know market changes every day & it is dynamic. Thanks sharing your view.