Nifty Analysis 9 April 2012

Nifty Spot Movement - 1 min Chart on 9^th April 2012 but in Broader View: -

·        The above chart shows trend line in various colors but I would like to show that how the prices are taking the support and Resistance and acting as short term price or trend reversal.

·        These are actually Channels and Triangles. Nifty spot prices are moving inside the triangle shown in the RED color which I am looking at Ending diagonal pattern as per EW theory. Currently Nifty is in the E wave in the ABCDE pattern.

·        Ending Diagonal Pattern – All waves has internal 3 wave structure i.e abc

·        Ending Diagonal can be seen after the major moves (Specifically after 3 waves). Ending Diagonal usually seen in the 4 or 5 Wave of the Impulse 5 wave pattern. But it is not necessary as book say it can be observed in the B wave of the corrective 3 wave pattern.  

·        So where we are now and where Nifty will go tomorrow or in the rest of the week.

** As per the chart we are in the E wave which again expecting 3 wave corrective (abc) pattern.

** Today We have completed the a wave. Why a wave completed?

     As we retrace 61% of D Wave.

     As we completed 5 wave internal structure of a. Also, another possibility came up that since a is the 5 internal structure then we will should see the zigzag or triangle pattern.

    Now since we have completed a, it should correct to upward and has to made b which I am assuming 5380/5300/5320.

    Then, price should reverse from wave b and has to make C in the down word direction. C and E target has to be same approximately 5130/5110.

·        Let’s watch tomorrow’s movement. Happy Learning!!!