Price has started an impulsive structure on 24 March 2020. It has exceeded the supply pressure by creating demand.
Wave ((1)) formed as a because there was the existence of seller and supply pressure.
All the fundamentals were before this move. So, it was a bit risky to think about a trend change without any proper signal.
Price has made a high of 9989, and the fifth terminating wave completed the wave ((1)). It has started falling downward, and traders thought that price could make another leg down.
5th sub-wave has completed the wave ((1)).
Once again, the price hasn’t signaled trend change, and the perspective was less risky than the perspective.
Corrective wave 2 created a sharp correction, but it couldn’t break the 50% level, and the price surged.
Price made a higher low.
Price broke the high of wave ((1)) at 9989, which has given evidence of an impulsive atmosphere.
The price is going for a new high with heavy demand pressure, which has crushed supply pressure.
fundamentals and public participants have skyrocketed towards a new high.
Sub-wave of wave ((3))
Sub-wave 1 is an impulse at 1032.
Sub-wave 2 is and sharp correction.
Sub-wave 3 is an impulse with 161.8% .
Sub-wave 4 is a deep correction at 10790.
Sub-wave 5 is the power extended wave at 15431.
Wave ((3)) has made a high of 15431, and public participants started booking profit.
After creating a high of 15431, buyers got surprising disappointment.
Price has started falling due to short-term sentiments and the profit booking.
Wave ((4)) is a double w-x-y, which indicates the single correction was not enough to correct the strong impulse move. pattern
It has an alternation of the triangle.
Price has completed corrective wave ((4)) at 14151.
After the accomplishment of wave ((5)), the price started a move.
Price broke wave X, which signaled a atmosphere.
Due to surprising disappointment, the price move is not as strong as we have seen in wave ((3)).
sub-wave of wave ((5))
Wave 1 is a five-wave impulse
Wave 2 is a less time-consuming wave.
Wave 3 is a normal extended wave.
Wave 4 is a deep correction triple (w-x-y-x-z), and broadning .
Wave 5 is forming and has confirmed its move by breaking wave X.
I have the following reasons to consider the current move as an impulsive wave.
Wave counts without invalidation.
Price broke the X wave of the corrective structure.
Sub-wave 4 of wave ((5)) retraced 61.8% of wave 3. As per rule, the 4th wave can’t retrace more than 78.6% of wave 3.
Price is on the momentum, but if price breaks down the wave X to take support, we can expect the following levels: 17790-17528-17316.
If the price is refusing for a retracement and continuously creating new highs, we price can go for 18600- 18825+
Let’s zoom the 5th impulsive wave of wave ((5)) to know the current situation of the Wave cycle.
The ending point of wave 4 is the starting point of wave 5.
After the accomplishment of, triple , the price has started an impulsive wave, and it has broken the X wave.
X was had holder the correction, and break out of X wave increased public participant in nifty.
Wave formations of the impulsive wave 5 of wave ((5)).
Wave ((i)) is a .
Wave ((ii)) is a correction, retraced 50% of wave ((i)).
Wave ((iii)) is a five-wave impulse, where sub-wave v is near to being completed.
After the completion of wave ((iii)), the price will start the corrective wave ((iv)). The question is, how to know if the corrective wave started or not?
The best way to find the starting point of the corrective structure is the breakout of the base channel.
If the price breaks the base channel, it may end near the previous wave (iv). I have already mentioned levels in the daily time-frame analysis.
If the price couldn’t break down the parallel base channel, it can create a new high, but it will give a short pullback to increase public participants.
Price has broken out the and started an upward move.
However, the current move looks strong, but the price can’t make a new high without proper retracement.
Nifty can’t get public participants Without trend pause(correction).
If the price breaks the , we can expect the following support level: 18232-17944-17604-17261
Please note that the price is above 18250.
If the price takes support on the , it can go for 18600-18845+ to touch the upper band of the channel.
Are you looking for NSE paid calls? Want to get premium trading alerts and unlimited access to Moneymunch? Join today and start potentially multiplying your net worth: Premium Stock & Nifty Tips
Premium features: daily updates, full access to the Moneymunch #1 Rank List, Equity Research Reports, Focus List portfolio of 50 longer-term stocks, Premium screens, and much more. You will quickly identify which stocks to buy, which to sell and target today΄s hottest industries.
Have you any questions/feedback about this article? Please leave your queries in the comment box for answers.