Thursday, October 23, 2014
October 23, 2014 Cycle Update
Interesting to see the hourly rising from the October 17 bottom.The elliptical path is illusory and has no relevance.Now the bars are near to the blue cycle top. So momentum should decrease and reversal may happen. 7930 is the first support followed by 7860.
On Monday, if we see a bar reversal, that is if the hourly bar closes lower than the previous bar low, then we can safely short till the levels mentioned above.
If Nifty strengthens on 27th also or is flat, then the next bottom should be expected around 7860 levels.If 7860 does not hold then it is back to 7720 levels.Expected date of this bottom is around November 03, 2014.
Since Nifty has gapped out of the downward blue trend line, it is highly unlikely that 7720 will be broken.
Si if we see a bottom in hourly the next cycle is about to begin and we can confidently buy.