November 21, 2016

Neowave analysis of market

the current bias is -ve, and it would continue -ve until the Index can actually start strengthening & closing above previous day.

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The “e” leg would turn “larger” than “c” below 25400 (Nifty 7860), which is a level exactly inside our month-long downside target of 25000-500 we marked on 30th Sep’16.
Our target of 25000-500 (Nifty 7700-7800) was marked on 30th Sep, and Trump victory and Govt’s denotification has only helped Index moved closer to our target.
Remember, this target is based on 60% pattern implication for the channeled Triple Combination rally from Feb’16 low of 22495 to Sep’16 high of 29077.


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The maximum pattern implication for a Triple can be as much as 70%, which would calculate to about 24500 (Nifty 7500).

If the ET does end at these pattern implication level discussed above, then Index could see a major recovery thereafter, either as a new move or as “x” wave with ET completing only the 1st Corrective of the larger correction
.
If the Index fails to hold the 60-70% pattern implication, then the larger scenario of 8-year cycle could unfold. As we all know, the year ‘2016 is on our 8-year cycle. If the Index falls into this spiral, it usually loses 50-60% from the highs.


Link to file: http://content.icicidirect.com/ULFiles/UploadFile_20161121105927.asp

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