Wishing all a very happy and prosperous year 2018.
I think wave ‘X’ is complete now and next a-b-c down has started.
- rising channel is broken
- Divergence is clearly visible
- RSI is now at support zone (33-37 area). Possible of some support here. We need to see how bounce happens. Ideally for wave ‘X’ to complete and if a-b-c has started, then this RSI should go below 33 and stay.
- Clear divergence in RSI
- divergence in MACD
- Engulfing candle stick pattern
- as this ‘X’ was corrective move, I was not expecting RSI to go beyond RED line and turn from YELLOW area. This has happened now.
Nifty is making complex correction with ‘X’ wave. If true, Nifty should move in RED channel for sometime now
Nifty is at iii-B support line for third time. In spite of couple of good news last fortnight like rating upgrade, GDP numbers – Nifty is unable to rise. This is giving me strong feeling that ,this time Nifty will break this support of iii-B line and will go further down.
Wave (4) down is in progress…
In hourly chart, technical are oversold. This can lead to some small rise or consolidation for sometime but major trend is down
Next support seen at A-iv line
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