We are still in Uptrend..

Key level in down side to watch is 4371. If it remain above that one we are still in Uptrend..

Is Bear Market Over??

In my earlier blog of Double Botttom, we analyzed the Nifty trend reversal with Double Bottom formation. Now in this post , i will try to analyze the same chart with Elliot Wave theory, with the Bull Market Truncation. Let's have a look into this..

Elliott used the word "failure" to describe a situation in which the fifth wave does not move beyond the end of the third. We prefer the less connotative term, "truncation," or "truncated fifth." A truncation can usually be verified by noting that the presumed fifth wave contains the necessary five subwaves.

If we see above, after a strong fall, Nifty gets into a trading range and we can see at (7), which is end of wave 5. After wards market is in uptrend. So is the Bear MArket over and are we in a new bull cycle?? Answer to this question lies in the key level of 4649 in NIfty. Lets watch how it unfolds..

Happy Reading..

Rangebound Trade

The massive consolidation is going on in Nifty.

You can almost feel it like steam trying to burst through a lid, or pressure building up that either will shatter this level… or fizzle out and fade away like mist.

This suggests that the range will expand to become larger by either moving up to establish new resistance, or moving down by establishing lower support. We will let the market decide it.

Since we aleady come up a lot, space for moving down is more. Lets wait and watch who wins in Bull v/s Bear fight..

This post mainly serves as a point of interest, demonstrating how a higher timeframe can directly influence the behavior (support and resistance) of a lower timeframe, and why it’s important to know key technical price levels in advance if you trade mainly intraday.

Thanks,
Bhupesh

NIfty -What's Next?

Nifty Crosses 4510. What's Next??

Some people are saying this is bull market and some strong bear market rally, and since the Nifty has raised almost 400 points in last 4 days, what should we do now as trader.

Some folks are talking about cup and handle formation, but for that a small correction for handle is needed, the time frame for which is 4-9 weeks. if you look at the weekly charts of Nifty, look at high price during Sept 08 of 4649. It seems to forming the The Head and Shoulders bottom pattern. Key level again to watch here is 4625-4649. If it break out above 4649 and continue to trade above that one, we may say that we are now in a Bull Market.

Lets see, how the nifty progress during this week.

thanks,

GOLD - Whats now??

Gold is on a steady pathway up to retest and likely exceed the $1,000 per ounce level which has served as substantial resistance in the past.
Let’s take a quick look at gold’s Daily chart structure to see this happening as it unfolds.Price has now moved in a ‘1,2′ wave pattern and now appears to be completing a 3rd wave fractal move up which could push us the $20 we need to hit that magic “$1,000″ level yet again. Even if we find resistance again at the $1,000 level, if the Elliott Wave fractal drawn is correct, then the 5th wave fractal (which could be part of an even larger impulse) would be expected to take us above that level.

"According to GATA (Gold Anti Trust Action Committee), about 15000 tonnes of gold has been loaned by the Central banks to the Bullion banks for which they paid about 1% per annum. The Bullion banks then sold the “loaned” gold on the open market and invested the proceeds at 6-7% per annum. It was a sweet deal until the gold prices started to move upwards.

Happy Reading!!