August 8, 2016

Neowave outlook by Vivek Patil

... if the upward “g” has opened from Friday, then we could watch if it continues for a total period of about 5-6 days, i.e. 4-5 days more from here, like all upward legs in the 2nd Corrective did so far.

Price-wise, we observed that each subsequent upward leg of 2nd Corrective was “smaller” than the previous leg, i.e. “c” was smaller than “a”, and “e” was smaller than “c”.

If the current leg also follows this parameter, then it should remain “smaller than “e”, i.e. end below 28268 (Nifty 8740), a level only above which “g” could turn bigger than “e”.

Though Bulls remain in control so far, such a structure can have -ve implications eventually, especially if the now-progressing “g” leg also remains smaller than “e”. In the fresh week, We’ll watch 28268 (Nifty 8740) accordingly.
Last week, Sensex broke the bottom of “e” leg marginally. i.e. “f” leg retraced the “e” completely in faster time.
Such a faster retracement of a raying segment is considered a -ve sign by NEoWave, especially if it was the “last” leg of the pattern, and it is then followed by lower top lower bottom pattern for the legs.

If “g” leg moves above 28268 (Nifty 8740) from here, we cannot rule out Bulls taking on our crucial structural decider level at the top of “B”, Jul’15 high of 28578 on Sensex. As we observed, Nifty has already crossed it equivalent level of 8655.

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