Tuesday, November 13, 2012

Nifty Channeling of Zig Zag

As per Neo Wave,the current correction from 5777 is a Zig Zag for the following reasons.
1. Wave a has retraced only 36% of the previous impulse  from 5583.05. That is wave a has retraced only 71 points of the previous impulse of 194.25 points.
2.Wave b has retraced more than 1% of wave a. In fact wave b has retraced 50% of wave a.So no part of wave b has retraced more than 61.8% of wave a.
3.Wave c must move at least slightly beyond wave a.In fact wave c has moved 74 points downward, which is significantly beyond the end of wave a.
Now the Zig Zag is within a channel.It has not touched the lower trend line yet. If it does so and the bounces, we may say with some confidence that wave c is over and wave x has taken over.Wave x also cannot go more than 5728.
On the other hand, if Nifty improves strongly from c then we may consider that c point is E and the correction has ended.
But our Astro indicators are hinting at the correction continuing for some more time.Which means we may expect a small bounce as x wave and then an abc correction as indicated in the previous blog post.

On the intermediate term daily chart we may see Nifty taking support on the 1X2 Gann Angle line.

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