Nifty Target using Head & Shoulder pattern with Elliott wave! BANG ON!

elliott wave head & shoulder pattern nifty May 10, 2024

Nifty is moving precisely as per the technical analysis pattern of topping Head & Shoulder. When prices were near 22300, we forecasted targets of 21970 levels.

Combining this pattern along with Elliott wave and Neo wave provides strong forecasting ability.

The below chart of Nifty was shown on 10th May 2024 when prices gave breakdown of the pattern which is picked up from the Daily equity research report.

Nifty hourly chart anticipated as on 8th May 2024

Waves analysis: Anticipated as on 8th May 2024

Nifty opened on a flat note for the second straight day, in previous session. During the day, prices showed sharp selloff. At the end Nifty ended lower with a loss of -0.62 at 22302 levels.

In the previous session, FMCG sector gave breakout of the consolidation. Along with this, IT also gained good momentum towards the end of the session. These two sectors were the only sectors which were amongst the top gainers, when Nifty fell more than 270 points during the day. Amongst the stocks, HUL surged more than 5%. Along with this, Tech Mahindra, Britannia and TCS were also amongst the top gainers in Nifty. On the other hand, Broader indices closed in red for the second consecutive day. PSU Bank, Auto, Pharma participated in the fall.

India VIX jumped to 17 and it is currently trading at crucial resistance a breach above 17.5 can result into further rise in VIX. This suggests fear amongst investors amid elections.

In the previous session, Nifty satisfied 3 candlestick rule conditions and gave a close below previous day’s low, low below previous day’s low and high below previous day’s high. This is suggesting that short term trend has changed to negative. On the daily chart, Nifty gave a close below mid band. Now with follow up selling we can expect a move towards lower bands which is near 22070 in coming sessions.

On the hourly chart, Nifty gave a breakdown of the topping Head & Shoulders Pattern. Target as per this comes near 21970 levels. As per wave perspective, after completing wave g on the upside fresh leg is unfolding on the downside.

In a nutshell, Nifty gave a close below previous day’s low. For now, a break below 22200 can accelerate further selling pressure which can drag the price lower towards 22100 followed by 22070 levels.

Nifty hourly chart Happened as on 10th May 2024

Happened: Prices moved precisely as expected and made a low of 21932 levels which was achieved in the previous session which is a move of more than 400 points in just 2 trading sessions.

For now, trend remains sell on rise with the targets of 21880 or lower. While on the upside 21240 is the nearest resistance.

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