BankNifty Is Unfolding Final Impulsive Wave Z
Bank Nifty has started its Elliott wave cycle from the extreme low of 16116. It has completed the extensive impulsive wave (3) at 41829 and started falling in descending channel.
Currently, Banknifty is forming a triple zigzag on the corrective wave (4). Price has occurred the X-2 wave and started wave Z of the triple zigzag.
According to EWT, corrective waves move in the parallel channel, and the impulsive wave breaks the channel. An uptrend can only be possible after the breakout of wave X.
Let’s zoom into the lower timeframe to study this corrective structure:
Price is forming a final leg down Z. If the price breaks the control line, traders can short for the following target levels:
But the price has reversed seven times on the control line. If the price sustains above the control line with strong candles, the traders can long the following targets:
Although the wave principle has shown a bearish structure, we should always respect the price action.
Day traders should wait for our “morning outlook” for intraday trading on nifty and banknifty futures & options.
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