June 19, 2017

Neowave outlook of market

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The question for the fresh week, therefore, is whether “f” is now completed, and whether an upward “g” leg would open from here.

As an initial sign than “f” is over and upward “g” is opening, Index needs to strengthen & close above its previous day’s high.

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The question is also whether “f” would be completely retraced upwards in “faster” time. Previously, 8-day “b” leg was fully retraced in a day. Similarly, 5-day long “d” leg was also fully retraced in a day.

We cannot, therefore, rule out that if an upward “g” leg opens, it can retrace the 8-day long “f” leg within a day or 2, which could make shorts to run for cover like the last 2 times.

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On Sensex, the 5-day lows are similar, 31044-62-55-26-17, from Monday to Friday of the Week. All these values are also close to the Grey channel. So, a Bull candle holding around 31K, can be an initial +ve sign.

This, followed by strength/close above Fri’s high (31183/9616), could mean that the downward “f” leg may be over, and upward “g” leg is opening. As already warned, “g” can be a strong up-move.

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