September 25, 2017

Neowave analysis of markets

...As per NEoWave, a larger falling segment could be a sign of maturity of the rally. The question, therefore, is whether the 25-day rally from 11th Aug to 19th Sep’17 is now over, i.e. whether upward “g” is over.

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To confirm that “g” has indeed ended as a “Bow-Tie Diametric”, we require faster retracement of the 25-day Aug-Sep rally, i.e. fall below 11th Aug low of 31128 (Nifty 9685) in the next 24 days.

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However, if the current fall avoids a faster retracement of Aug-Sep rally, and stops near the bottom of lower-degree b-leg of “g”, i.e. above 4th Sep low of 31560 (Nifty 9861), then the alternate White label scenario of “g” still developing as a “Diamond-Shaped Diametric”, could turn valid.

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The “g” leg is last leg of any Diametric. If the “g” leg has ended, then the larger Diametric from Dec’16 has also ended, and that too, as a “Failure” on Sensex, though not on Nifty.

As per NEoWave, faster retracement of last leg of rally is a sign that rallying structure may be over, and another structure in an opposite direction is opening.

... Read more at http://content.icicidirect.com/ULFiles/UploadFile_2017925101119.asp

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