What to expect in Nifty in coming Weeks/ months. So far till 8000 we have seen a ABC pattern and we know that it’s the wave 4 which is going on. It is also known that the wave 4s are complex, sideways, not as sharp as we have seen, which makes a case of 2 scenarios:
1) the ABC wave decline is a Wave ‘a’ of larger degree and is over (from 9100 to 8000) and the ‘b’ wave of the Flat is going on, which should be again 3 waves, this up move could be 62% to 138% of the 1100 points fall. After this we may see the final C wave, a 5 wave decline.
Since, in a flat wave must be atleast 62% of Wave ‘a’ ,Nifty must atleast reach till 62%, which is 8680. The Present upmove which has started seems to be the A of b wave on upside, It is very weak, as is correction to the correction. You can see in the channel, prices are not able to cross the middle line.
2) Complex corrections in wave 4s could be very easily be Triangles and that scene is also open and that still requires 62% retracement of the upside.
So both the cases may taking us towards 62% retracements.
3) There is also a possibility of double and triple threes in wave 4. Which may imply we may face complex correction for months.
Please refer both the charts. Hourly as well as Daily and take your own decisions.
“This is just a personal view and neither a recommendation nor a tip nor an advice for any trade.”