Prices and Moving Average:
Nifty closed at 5429 on last trading day which is below the trend Indicator 5 Dema ( 5484) . I infer the trend is down .
DLema is at 5457 . Only a close above this DLema will suggest weakening of downtrend presently on.
DHema at 5551 , Only a close above 5551 will suggest that 4th wave is over and we are in 5th to make another new high .
EW angle:
we did the ivth wave at 5341 of last 3rd wave from (4588-5630) , SO EW says we may end this 4th wave at the lvls closer to lvls of ivth wave of one degree less .Which comes to 5341 lvls . Refer to chart below..
Channels :
Breaking the green channel we can say that the 3rd wave up is done and we are in 4th wave down .
We are trading very near to the channel bottom ( the red channel )which come s in 5380-5400 zone .
As we move above the upper trendline of small blue channel that you see drawn for the 4th currently going on , we will be able to say that we are 5th wave UP.
Fibonacci Retracements:
My Plan ;
Considering I have no positions at present ....
I will watch out for prices staying above or below the DLema ...If they close above the DLema 5457 at 10:00 close I will buy for target as DEma at 5484 and then DHema at 5551.
Or if we go down further ...will watch out for 5353 lvls ( this is where c=a for the 4th wave going on presently) and if we get there , will buy there .
Nifty closed at 5429 on last trading day which is below the trend Indicator 5 Dema ( 5484) . I infer the trend is down .
DLema is at 5457 . Only a close above this DLema will suggest weakening of downtrend presently on.
DHema at 5551 , Only a close above 5551 will suggest that 4th wave is over and we are in 5th to make another new high .
EW angle:
we did the ivth wave at 5341 of last 3rd wave from (4588-5630) , SO EW says we may end this 4th wave at the lvls closer to lvls of ivth wave of one degree less .Which comes to 5341 lvls . Refer to chart below..
Channels :
Breaking the green channel we can say that the 3rd wave up is done and we are in 4th wave down .
We are trading very near to the channel bottom ( the red channel )which come s in 5380-5400 zone .
As we move above the upper trendline of small blue channel that you see drawn for the 4th currently going on , we will be able to say that we are 5th wave UP.
Fibonacci Retracements:
Clearly as the close is below the DLema Momentum is DOWN.We see the 2nd wave of this move did a deep retracement so the 4th should do a shallow retracement which can be 23.6% or 38.2% .
23.6% comes close to the channel bottom 5385 lvls. Which suggests that we migth see a bounce on monday suggesting Wave B unfolding to up to be followed by wave C to down .
Considering I have no positions at present ....
I will watch out for prices staying above or below the DLema ...If they close above the DLema 5457 at 10:00 close I will buy for target as DEma at 5484 and then DHema at 5551.
Or if we go down further ...will watch out for 5353 lvls ( this is where c=a for the 4th wave going on presently) and if we get there , will buy there .
