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.


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.


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.


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.

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