July 18, 2016

Vivek Patil's weekly neowave analysis


As of now, “D” is bigger than “B”, which is required for “Expansion”. Price-wise, “D” is twice the size of “B”. The “Running” variation of Expanding Triangle would require both B-D line & A-C line to slant downwards.

This is contrast with “Horizontal” variation of Expanding Triangle, wherein B-D line should be slanting upwards and A-C line slanting downwards. 

Therefore, to confirm the “Running” variation, “D” should end below the top of “B”This would mean “D” should end below 23rd Jul’15 high of 28578 (Nifty 8655) to maintain the “Running” variation. 
However, till the Index starts making lower top lower bottom below the 0-x line, which is considered as the Baseline for “D”, the short term trend would be assumed as UP as per Dow Theory (higher top higher bottom).

However, if the “D” leg crosses the top of “B”, then the structure from Mar’15 onwards could turn into “Irregular” variation, which in fact is a most common variation of Expanding Triangle variation OR a Neutral Triangle, the NEoWave details of which would be revealed next week, if required.

Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016718102917.asp

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