Elliott wave Analysis of Nifty: From last hourly chart Nifty Elliott Wave and Fibonacci Analysis 25 May 2015, I shared on Tuesday, in 2 days now, we have seen the B wave unfolding on the downside, though it did not took support on highly sought support of 8240 but reversed from 8270. But some thing that we already knew was that 8240 was likely when the trend was to fall in that flow, however as B wave had to further subdivide in to 3 waves the momentum trendline, I had drawn on the previous chart did not continued as the B subdivided into 3 waves, now it is high likelihood that we are done with the B wave on downside because of the following reasons:
1. Nifty took support on blue channel lower trendline.
2. The downfall was slower in terms of momentum compared to 5-7 May fall and 12 may fall.
3. Visual Squaring of time and price from 5-7 May fall was applied to recent fall of 22-28 may. This concept is derived from Gann’s work and I have mixed my trick and made it visually applicable without any trendline or scale measurement.
Now, going forward we should project the C waves into the future. Confirmation will be received once we break the b of B wave at 8368. In my view, Nifty must reach atleast till odd color channel, 8546 to 8640, many fib Ratios lie here, 62% of the A of (B) will land here, while A of (B) = C of (B) will lie in upper channel. Both the possibilities are alive nifty has shown the signs of reversal. Lets see how new waves unfold, I still in a view of C on upside is left then only the downside 1100 points will get balanced correction, we are still left with few hours to complete the 38% time retracement that was discussed last time.
Caution, the break of the down-line of blue channel will mean nifty touching the red channel down-line. All these views are just for educational purposes, with no intention to recommend any thing. To learn in detail please mail me at Ruchirgupta2000@gmail.com