EWM Interactive | Sep 25, 2018 05:56AM ET
We published our ulse ” was supposed to emerge from the bottom at 6826 in February 2016. As visible, wave (4) had bounced up exactly from the 38.2% Fibonacci level and wave(5) was still missing. A new all-time high had to occur, in order to complete the pattern.
On the other hand, the theory states that every impulse is followed by a three-wave pullback in the opposite direction. So instead of joining the bulls when wave (5) exceeded the top of wave (3), traders would be better off staying aside in anticipation of a bearish reversal.
h3 Nifty 50 Elliott Wave Update/h3Nifty 50 climbed to a new record high of 11 760 on August 28th. Less than a month later, on September 21st, it fell to an intraday low of 10 866. The bearish reversal the Wave principle warned us about nearly four months ago is one month in the past now. The updated chart below visualizes how things have been going.
Actually, wave (4) was not over at 9 952. Instead, it developed as an a-b-c-d-e triangle correction, without changing the overall outlook in any material way.
As of this writing, Nifty 50 is trading slightly above the 11 000 mark. The price is now knocking on the support line drawn through the lows of waves (2) and (4), and if this count is correct, it has a good chance of breaching it. We believe the bears should at least be able to drag the index down to the termination level of wave “a” of (4). In terms of price, this means a decline to under 10 000 is on the cards. It looks like it is too early to buy the dip as the Nifty 50 is poised to lose another 1000 points from current levels.
Original post
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.