Neo wave, Channels and Moving averages helped in capturing the uptrend in Nifty and stocks.
Advanced concept like Neo wave has continued to help us to forecast the
trend in Equity Markets. It was in the last week of December 2016 when Nifty
was trading near 8000 level we mentioned our bullish stand based on Diametric
pattern under formation. Based on the medium to short term structure targets of
8250-8300 zone was given in the research of 29th December 2016.
Below we have shown part of research taken from “The Financial Waves Short Term Update”.
Nifty 60 mins chart: (Anticipated in the morning of 29th
Nifty 60 mins chart: (Happened till now)
As per the research
report published on 29th December 2016 when Nifty was trading near
“As shown in daily chart
of Nifty, recent bounce back from 7890 suggests that prices have managed to
protect B-D trendline on closing basis. The retest of 7915 level indicates that
Nifty has formed “h shaped pattern”. This pattern is identified by us
(not in text book) on many occasions. It takes the shape of “h” where prices
retest the earlier lows with less momentum and then reverses on upside to trap
the bears. As per Elliott wave structure, 7890 is the crucial support which
should get protected over next few days and prices should complete its course
in form of minor wave (y) ….Target for wave E can be tricky since it is last
leg of triangle but prices can retest the channel resistance near 8250 – 8300 levels”
above research clearly indicates our bullish prediction for Nifty when it was
trading near 8000 level. Post publishing this research, Nifty has moved in
lines with our expectation protecting the important support and achieved the
target level 8300 in today’s session.
Many analysts or traders are now coming out with bullish forecasts. It is
interesting to see how most of them came out with bearish predictions towards
7500 when Nifty broke 7900 levels but we maintained our objective outlook of
upside reversal and now majority is extrapolating for Nifty towards 8550 – 8600
levels. So how much steam is left in
current rally? To know the same subscribe to “The Financial Waves Short Term Update” which covers Nifty and
3 stocks where short term trading opportunity exist. For subscription visit Pricing Page