“Is Nifty heading for new high or new low” or “ what is the whole corrective pattern going on from 9117” are the queries I am getting from subscribers as well as students. Though I tried to explain it in my last weekly analysis report published on 19 Oct 2015 but I think I failed to make them understand as still I am getting same question as well as suggestions about pattern.
So, today I tried to explain all the possibilities separately on same charts one by one. And I need to analyze Nifty wave counts from all time high 9117 to get answer of these questions. I had given three possibilities for this whole pattern started from 9117 in my last report Nifty Elliott Wave Analysis for the Week Commencing 19 Oct 2015. These were:
- Either this correction already completed at 7541 as “Double Zigzag” as (abc-x-abc). 9117-7997 as 1st abc, 7997-8655 as wave ‘X’ and 8655-7541 as 2nd “abc”. Nifty can go for new high in this case but step by step.
- Or this correction may turn into triple zigzag where (abc-x-abc) is already completed and (–x-abc) is still pending. Nifty can rise till 8450-8550 (Minimum till upper blue line) in this case followed by sharp decline for 7541 and below. This possibility will be negated after break above 8655.
- Or this is a normal ‘abc’ correction going on and Nifty can go below 7541 again but this possibility will negate after break above 8322.
Out of these three possibilities, possibility no. 3 has been negated at Nifty broke 8322 on Friday. So, let’s analyze what is there on latest charts.