November 29, 2016

Neowave outlook of markets

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.

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.


2 comments:

  1. Sir,It is not easy to understand the logoc of neo wave analysis by layman like us.It will be more helpful us is a few lines are written by you what exactly it wants t convey.If required you may ask the opinion of others on your blog in support of my statement
    Thanks
    Regards

    ReplyDelete
    Replies
    1. Ignore it... this stuff never ever made sense to me.

      Delete