Friday, January 23, 2015
Nifty Technicals update Jan 23 2015
Question is will an inversion happen now?
Chances are we may have a displaced inversion next week. This means the current up leg is maturing fast and the risk reward ratio is not in favour of longs anymore. Most of the anticipated news are out.
Also every time an inversion happens, then the next cycle will see a low.
Since we are in c wave, that low could be a higher low, of course.
Last 46 day cycle was right translated as shown in the yellow high light. We had mentioned a month ago that the next cycle could be bullish. And so it is.
c way has another 25 days to go. Likely time equality is Feb 27, which coincides with a 46 cycle culmination.
b wave was a limiting horizontal triangle, for which 61.8% ration of break out is important. Those levels are indicated. Rest analysis by weekend.
Net sum up: Buy on dips.