Banknifty has accomplished the corrective wave (3) and collapsed for the corrective wave (4). The acceleration channel shows the power of an extensive wave (3). Wave 3 is an extensive wave with the Fibonacci extension of 361.8% of wave 1.
It is critical not to overlook these two crucial points when trying to determine the ending point of wave (4):
- Banknifty is holding a significant support level at 38200. Breakout of this level will also break the acceleration channel.
- The common retracement of wave (4) is 38.2% at 37222.25. Moreover, this is the exact level where the previous wave 4 occurred. In most cases, the 4th wave ends near sub-wave 4 of lower degree.
After completion of wave (4), traders can ride for wave (5) for the following targets: .
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