Is Nifty arrived at crucial juncture? How to trade using simple technical analysis?

Nifty showed a sharp move on downside from the highs of 10086 made last Friday. After many weeks there was a correction of nearly 100 points that too amidst all the optimism!

 So does it mean we are reversing? No, it is too soon to conclude this unless important support levels are taken out. But as we keep mentioning in our daily equity research reports it is time to stay alert and not complacent which has paid well so far.

Infact, many of the subscribers already knew about the triangle pattern even before it started to form which helped them to buy near supports and sell near resistance levels. But now we should start seeing a trending move soon.

You can also look at the concept of range bound trading strategy I discussed in my last Friday’s video – How to trade Nifty?

Now look at the below hourly chart of Nifty: (shown in morning research before markets opened)

We showed a probable triangle pattern which might be completing. So the closing of next two days become crucial to confirm the above wave counts. A few of the counts are purposely deleted as they are meant for paid subscribers. But nevertheless, if you use simple technique like Bollinger Bands and Channels you will know the bias as of now.

Nifty has now taken out the low marked as wave d and the next support is now at the low of wave b. If this level is also taken out decisively we might be headed for a reversal. So it is time to keep a close watch on crucial levels and the Elliott wave counts as it develop. Faster retracement of last rising segment is one of the most basic techniques in Neo wave that helps us to understand and catch a reversal early on!

“The Financial Waves short term update” is a daily research report published before market opens and it shows very detailed objective method for capturing the trend on Nifty, Bank Nifty and stocks on periodical basis. In today’s session, at one point of time Nifty gave more than 100 points of down move despite of all euphoria. It is time to be objective and alert! For subscription to this research simply visit Pricing Page.

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