Nifty is precisely following this rare Neo wave pattern at life time high!Dec 29, 2020
Any wild swings at lifetime high levels seem like they are a major reversal. But there are ways to know if it’s a reversal or just a correction.
Like many retail traders who know technical analysis would often go short on Nifty on days like the 21st of December or try to short any rally after a day of steep fall since the index was almost over bought on many traditional indicators.
Our Financial waves daily report subscribers have been able to make the most of these sharp dips using it as a buying opportunity as the index is soaring to new highs!
Look for yourself what was in the report that our clients received.
Nifty hourly chart sent to clients on 28/12/2020 before market open:
On the daily chart, the loss of 21st December got covered in just 3 trading sessions as Nifty showed a sharp V shaped recovery from the lows. Buyers continue to exert force and push the prices up. As per the wave counts, prices are in wave g of the diametric post x wave. Wave g has reached exactly 50% mark of wave a as of now and as of now, prices have approached the upper trendline once again. The 30-day moving average is an important support level. The approach continues to remain as buy on dips as long as prices remain above the average. Existing buyers should continue to trail their profits using trailing stop loss method.
As shown on the hourly chart, prices broke above the resistance of the 55-day moving average with a gap and sustained above that. The next crucial resistance is at 13780. The break above that will lead to further up move in prices.
In a nutshell, Nifty can continue to trade in a broad range. A break above 13780 will lead price towards 13900 levels. The stance remains ‘ Buy on dips’ as long as 13620 is protected on downside on closing basis. A break below 13620 will be a sign of concern.
Nifty hourly chart as of 29/12/2020:
Nifty made a high of 13967.60 as of 29th December 2020 precisely following the path which we mentioned and exceeded our target slightly.
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