Nifty opened huge gap up on Friday and traded with strength whole day. Nifty opened about 70 points Gap up on Friday and didn’t traded below the opening price again. Though the gap-up and sudden bounce surprised many but I was already expecting it. Let’s see charts to see further progress.
This is hourly time bar chart of Nifty covering move after 7724. I assumed in my previous reports that wave 3 is completed at 8454 followed by wave 4 as “Complex Correction” ended at 8353 and there is a start of wave 5 from 8353 which is able to go minimum till 8631-8804. Nifty shown 8617 on Friday and we need to see inner waves of 5 for further possibilities.
This is 15 minutes time bar chart of Nifty covering move after 8353. In my previous reports, I was in some confusion because of slow rise after 8429 as wave 3 is often faster than wave 1 and I was also cautious about sharp decline below 8429 again. But I didn’t exit my longs as I didn’t want to miss opportunity if Nifty bounced without dip.
But Nifty bounced without dipping below 8429 and made a complex pattern here. After Spending some time and keeping Personalities of waves in mind, I came up with most probable counts as represented on chart.
It seems Nifty again made complex correction pattern (abc-x-abc-x-abc) for wave (2) but with failure last “abc” cycle as last/3rd “abc” cycle ended at 8439, failed to go below 2nd “abc” cycle (8429). And wave (3) stated from 8439.
This type of complex correction pattern is rare but very bullish for next move. It often occurs in extreme bullish sentiments. So, if I am right at identifying, Nifty can easily achieve 8800. From the chart, it seems just inner wave (iii) of 3 is in progress.
Charts are suggesting extreme bullishness and levels till 8800 looks comfortable but we must be cautious if we are wrong at identifying. So, I am taking some risk and not booking profit in my longs taken at spot 8437. I am not booking profit but holding my longs with 8531 spot as trailing stop loss that may change later after seeing further waves.
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