6350/6360 is proving to be a crucial point for the Nifty. For the time-being is working a stiff resistance. Facing the pause at this 6350 odd levels, would give the first impression of the hard nut to crack. But if we are to look at the other way round that in spite of hard ceiling at 6350/60 levels, Nifty is repeatedly moving gradually towards it, in the very short span of time, not caring that it would be pulled back. Doesnt this movement towards the 6360 levels suggest the determination to surpass this level. Flirting with levels of 6360 levels, again and again, asks for the visit to the charts. Niftys latest move has been on the upside which started from 5118 on 28 August last year, and for the last three months is hovering around the upper range of this move. NIfty has taken too long around these upper band of this rally,arousing doubts about the change of the trend. Let us look at the charts. Since 03.11.2014 , the highs of 6342 , all the internal structure of the Nifty is in the corrective form, has lot of zig-zags or overlapping. Such a conjection movement can be looked upon as a pause of the overall move, in other words correction of the ongoing move. Elliotians would term such a compressing move as a Contracting Triange, which actually it appears at this juncture. Contracting Triangle consists of 5-wave structure, and all those 5-wave have corrective pattern within. The latest downside movement starting from 6355 day before yesterday, is unfolding the wave e of an triange, hence even this sharp pull down would be seen as the part of the correction which should not go below 6070 levels. Thus this ongoing move from 6360 can terminate anywhere above the 6070 level and then the overall larger trend, which has the last leg on the upside still pending, should resume with the thrust on the upper side.
Posted on: Sat, 25 Jan 2014 06:12:27 +0000
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