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With this fall, Sensex has retraced 78% (Nifty 66%) of the 3rd Corrective. It has also retraced its last 21 days of Sensex gains fully within 7 days. On Nifty, it retraced 16 days of gains in 50% time.
If the ferocity of the fall continues further from here, and breaks the starting point of the 3rd Corrective at the bottom of 30th Jun, i.e. it breaks below 30680 (Nifty 9448), then we’ll have no other option but to finish off the 3rd Corrective.
This could mean that the post Dec’16 rally ended as a Triple Diametric, as per the new labels shown on the initial Daily chart.
For the time being, we consider the new labels as alternate labels, but the same can confirm if 3rd Corrective is completely retraced.
Remember, we had already marked the 1st as well 2nd Corrective both as a Diametric pattern.
As per NEoWave, 3 is the maximum number of Correctives one can have inside a Complex Corrective development. This means, we cannot expect 3rd x-wave and 4th Corrective thereafter.
If the Index adopts the alternate structure by completely retracing the 3rd Corrective as per new labels, then it would mean the current fall is part of a fresh downward structure, and last week’s fall is only “a” leg of the downward structure.
Read more at http://content.icicidirect.com/ULFiles/UploadFile_2017814105413.asp
With this fall, Sensex has retraced 78% (Nifty 66%) of the 3rd Corrective. It has also retraced its last 21 days of Sensex gains fully within 7 days. On Nifty, it retraced 16 days of gains in 50% time.
If the ferocity of the fall continues further from here, and breaks the starting point of the 3rd Corrective at the bottom of 30th Jun, i.e. it breaks below 30680 (Nifty 9448), then we’ll have no other option but to finish off the 3rd Corrective.
This could mean that the post Dec’16 rally ended as a Triple Diametric, as per the new labels shown on the initial Daily chart.
For the time being, we consider the new labels as alternate labels, but the same can confirm if 3rd Corrective is completely retraced.
Remember, we had already marked the 1st as well 2nd Corrective both as a Diametric pattern.
As per NEoWave, 3 is the maximum number of Correctives one can have inside a Complex Corrective development. This means, we cannot expect 3rd x-wave and 4th Corrective thereafter.
If the Index adopts the alternate structure by completely retracing the 3rd Corrective as per new labels, then it would mean the current fall is part of a fresh downward structure, and last week’s fall is only “a” leg of the downward structure.
Read more at http://content.icicidirect.com/ULFiles/UploadFile_2017814105413.asp
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