NIFTY50.....Wave b done, or a double waves 1 and 2 underway?Hello Traders,
The NIFFT50 made a low on the 21st of November at 23262! Since then it has been moving within a "three-up" or double wave 1 and 2!
In the first case, the next move should be to the downside, developing a wave c/y to lows below 23263 for the next 2-3 weeks. A good indication of such a move is a break of 23873. A possible price range for such a move is at or around the 213xx area, close to the June lows. More bearish potential!
If a double wave 1 and 2 is underway, then the price targets will be higher, probably to the new ATH`s.
A first indication of such a scenario would be if the N50 breaks above the resistance at 24851 and if it breaks above the 0.618 Fibonacci @ 25082 on a daily close with strong bullish volume!
A break above the 25600 area (0.786 Fibonacci) will reduce the chance of what I call a "sucker wave". A possible "B-wave"!
In fact, a flat pattern is always possible, `because we are probably moving within a corrective wave and the move to the upside on a weekly basis does not give fingertips for an important high in place!
Anyway! On Friday, we saw a "Kumo breakout", which is actually a buy signal according to the Ichimoku technique! But always be prepared for a retest of the breakout in the 24500-24400 area.
That's all for today.
Have a great week.....
Ruebennase
Please ask or comment as appropriate.
Trade on this analysis at your own risk.
