Hello Traders,
as I wrote yesterday I´m still observing the Pattern and the length of the Wave which is declining. Today`s Session opened with a GAP down and closed the Day lower at 9685.55! At 9696 the Move down has the 2.618 Distance of Wave a! This is the maximum which is acceptable for a Wave c in a Flat pattern and a ZigZag too. For today I have placed the alternate Labbels at the Chart but I´m not still certain about the next move. RSI is showing Divergence on the 2 h Chart, while the NIFTY50 createt by Traders behavior a Doji Candle which represent uncertainty while the NIFTY200 shows a "Inverted Hammer Candle" which still can be a reversal Candle. For this scenario Mondays closing Candle is important because it have to be a Bullish one! On a Daily Chart there is a resistant Line to watch which connects the High at 9709 and the Low today, touched 3-4 times in trading. This Line is in my view important. It must remain as support!
By always watching the Keltner Channel u can observe that on a Daily Timeframe the Channel is declining for some days. The middle Channel line is around 9K area. On the 2 Hour Chart this level represents the area which I have counted as a Wave 4 high and is a bit above the middle Line! So a countertrend Ralley into that Pricezone is still to expect on Monday. Mabe a lower Low at the opening bell is still possible, depending on Traders behavior in US Trading!
Outlook:
If the Index is still declining after a Countertrend Ralley a common target will be the zone around the Wave 4 low at ~ 9444. More bearish potencial excists. A target is the 9200 area, the lower KC Line.
We have to wait for Mondays Trading and watch the market closley.
Have a great weekend...
Rubennase
Questions and Comments are welcome!
2 Hour Chart
as I wrote yesterday I´m still observing the Pattern and the length of the Wave which is declining. Today`s Session opened with a GAP down and closed the Day lower at 9685.55! At 9696 the Move down has the 2.618 Distance of Wave a! This is the maximum which is acceptable for a Wave c in a Flat pattern and a ZigZag too. For today I have placed the alternate Labbels at the Chart but I´m not still certain about the next move. RSI is showing Divergence on the 2 h Chart, while the NIFTY50 createt by Traders behavior a Doji Candle which represent uncertainty while the NIFTY200 shows a "Inverted Hammer Candle" which still can be a reversal Candle. For this scenario Mondays closing Candle is important because it have to be a Bullish one! On a Daily Chart there is a resistant Line to watch which connects the High at 9709 and the Low today, touched 3-4 times in trading. This Line is in my view important. It must remain as support!
By always watching the Keltner Channel u can observe that on a Daily Timeframe the Channel is declining for some days. The middle Channel line is around 9K area. On the 2 Hour Chart this level represents the area which I have counted as a Wave 4 high and is a bit above the middle Line! So a countertrend Ralley into that Pricezone is still to expect on Monday. Mabe a lower Low at the opening bell is still possible, depending on Traders behavior in US Trading!
Outlook:
If the Index is still declining after a Countertrend Ralley a common target will be the zone around the Wave 4 low at ~ 9444. More bearish potencial excists. A target is the 9200 area, the lower KC Line.
We have to wait for Mondays Trading and watch the market closley.
Have a great weekend...
Rubennase
Questions and Comments are welcome!