- Nifty is approaching a host of supports ranging from 5600 odd levels to 5475. The last pivot low rests at 5477.20, unless this pivot low is taken out there is a possibility of another leg up.
- Whether this leg up takes out the last pivot high around 6229.45 remains to be seen.
- The fall from last pivot high is looking more corrective than impulsive, and given the supports combined with possible +ve divergences, we may atleast see a pause to this vicious fall.
- Also prices have already taken greater time to fall as compared to the last rally and still have not retraced the rise completely, which means the larger trend should still be up.
- But all this analysis is anticipative, a wise trader always follows what market is doing, and right now it is moving down, unless there is a clear evidence that the trend has turned no long positions are warranted. Stop-losses can be tightened at best on shorts.
- The support zones mentioned above have provided support to the prices twice before, hope prices get third time lucky. But the overall picture is not encouraging, even though we may get a leg up, but the picture is turning bearish on a bigger fractal. Unless the all time high is taken out we cannot expect the bullish euphoria to return.
Monday, June 24, 2013
Nifty - Elliott Wave Update
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