Nifty showed a move of more than 140 points in today’s session on the upside. This might be a shocker for the shorts but we have been mentioning the importance of a channel that has worked out brilliantly in the past on more than 4 occasions.
Below is the hourly chart of Nifty that was published today morning before equity markets opened. We mentioned the important support zone near 9950 levels which was also 61.8% projection of the wave a on downside.
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Nifty 60 mins chart (showed on morning of 26th March before markets opened)
Following was mentioned in morning research – The Financial Waves short term update
…The overall selling pressure seen now is due to the weak Global markets. US major index DJIA is down another 424 points. This can result into weak opening but closing is going to be crucial.
It is not only Nifty but many individual stocks are also arriving near the lower trendline support. It is rare to see lower trendline getting broken on downside and when that happens real panic kicks in. So it is very important for bulls to protect the lower trendline support on closing basis… As shown on hourly chart, prices are moving lower in the form of minute wave c of minor wave g of Diametric pattern. Friday’s low near 9950 is also where wave g = 61.8% * wave a. So today’s closing is important.
Existing shorts should book partial profits as prices are approaching cluster of support zone and trail remaining to ride the ongoing down move but with a strict stoploss in case there is a sudden reversal.
…We have seen break below all the major supports so far but this is the level near lower trendline from where we have seen bounce back on more than 4 occasions in recent past. Let us see if it works again this time or not!
Happened: Nifty moved precisely as expected and prices reversed back from the important Fibonacci projection and trendline support. This simply shows power of Elliott wave, Neo wave, Channels and Fibonacci.
In case you missed my latest webinar where I talked about me turning bearish near 11000 levels and now turning bullish near 10000 mark! Here you can watch it – Elliott wave channel.
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