Thursday, May 2, 2013

Astro Technicals for May 02, 2013

It is still unclear whether we are in a corrective Xwave to be followed by another abc or whether we are in wave B of the correction which had started from 6111.80.Since the present correction has moved beyond 61.8% chances are that we are in wave B.If so the present upmove may be marked as wave A of Wave B.If it is wave B, then we are going to go  higher but after consuming some more time.
Index ended with a long legged Doji on April 30, which since it is happening at a comparative top, can become a reversal signature, if there are follow up lower closes.Today the bias should be positive since RBI Policy Announcement is round the corner.
Next week should decide the future course of action for Nifty.

Volatility can be high, because intra day  up moves are getting weaker. At the same time we are not seeing a lower closing.
Trade safely.

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