Nifty has taken support at iii-B trend-line in Daily chart. We can expect some bounce from here.
If bounce comes, we need to watch RSI at 62-67 level In HOURLY CHART (Nifty @ 10360-10400). As at this level we can expect this bounce correction to complete and trend to start falling again. In case Nifty HOURLY RSI is able to sustain above 67, then we can expect this UP Trend to continue and think that whatever correction happened is over on Friday (10-10-2017).
Break of iii-B trend line in Daily chart will lead to big fall and we’ll put wave (3) complete at high around 10500.
Need to be cautious at this level. Rising Wedge with divergence in RSI clearly visible.
Earlier I said wave (3) may be over (please see weekly chart). I am changing it now as I think wave (3) is still in progress.
Medium term outlook is UP, until trendline iii – B is broken (see daily chart).
In very short time (Hourly chart), there could be mild correction in wave iv form. We can see divergence in RSI
Today Nifty broke up trend line. Possible that current ‘X’ wave is complete and next wave correction (A-B-C) has started
There is possibility of pull back tomorrow. If that happens, aggressive trader can make hefty profit in view of tomorrow being expiry date.
Technicals giving some indication of reversal which I am highlighting below:
- We are near Low of 11th Aug – 9685 as shown in Daily chart below. If Bulls have to come back, this is the place.
- MACD is near zero (reversal zone)
- RSI near 33 (reversal zone)
- I can see 5 wave move down which is in matured stage
- Divergence in MACD
- Divergence in RSI
Following strategy can be applied for Big gain, if it comes
- Near support area 9680-9700, look for reversal candlestick pattern in 5 min.
- If found, buy 9700 CE or 9750 CE
- Stop Loss: 2 points below LOW of reversal candle stick as in point 1.
NOTE: I already see a candlestick reversal pattern (hammer/dragonfly) in hourly chart (last bar). Hence I am not sure if reversal has already started or will it give better opportunity tomorrow
Is current up-move(correction) over?
Channel resistance line, Indicators suggest that we are near next wave down.
- Divergence (MACD, RSI) in Daily
- Daily RSI in reversal zone (62-67 level). Same in Hourly
- Divergence in Hourly
- Near all time high(resistance line)
- Near Channel resistance line (hourly)
- Last 2 days support at 10130-31. This will be 1st support to watch for
Nifty is taking support in trend-line. Hoping to break it soon.
In Hourly, seems we have completed wave X and next down wave a-b-c to follow