NIFTY Outlook

The current pattern on the $NIFTY is a carbon copy of the $SPX.  Advanced GET has labeled the current pattern as a Wave 3 down but before we get too excited at the prospect of continued weakness check the Oscillator.  In a true Wave 3 the Oscillator should indicate strength which is characterized by the Oscillator being significantly lower than the breakout band, in the case of the current Wave 3 we do not see this strength.    Remember that "strength" in markets can be up or down.

So if the Wave 3 is not really a Wave 3, than what is it?  It's too early to get a true Elliott Count so that leaves us to interpretation.  The low that we had Nov 3 could ultimately we a Wave 1 low and the current rally a potential Wave 2.  Our current Wave 2 resistance is 4945, if this can hold and we take out the Nov 3 low I would be much more confidant in continued weakness and new lows coming in.  If we rally past the 4945 Ellipse new highs are more likely. 

For those of you who trade this and are long from the False Bar Stochastic trade, 4945 would be a great place to take initial profits.  If you missed the Stochastic Buy I would wait until we pass 4945 and look to buy into any opportunity you see in a lower timeframe.  If we hold 4945 and take out the low, this would be a good place to start watching for an XTL Sell to take advantage of a new Wave 3 low.

Ron Wheeler   

eSignal Learning

Comments

[Gangaram Baderiya]

Mr. Ron Wheeler it as in excellent clarification. It was type 2 Sell on nifty. also XTL breakout. But presently is an pull back has to hold the level 4950 or may be the stochastic continuous buy whicm may not go beyond this level.

In conflicting trading strategy on memevers recorded event It was mentioned the larger picture of wave pattern to be taken into accounts than the smaller like Get-stochastic. So if we rake into consideration the larger patterns and XTL breakdown than the false bar buy single would be short lived. I request for your comments on Nifty Outlook.

[harsh jhunjhunwala]

if we look at the nifty weekly then it looks like wave4 therefore weakness
is eminent

[shridhar]

Respected sir
Thanks for your clarification regarding current nifty chart, how ever if we compare the nifty chart with brod base BSE index, the normal ellipse is hitting on BSE price which is equivalent to 5016 to 5030 NSE level,I am finding market is struggling there. I also need clarification about what to do with type 2sell which is already triggered? If we wait for exit from type to sell on basis of XTL+JTI buy,we could not trade the false bar Getstochastic buy, because we have already lost lot of movement on that.

[Jordan Brown]

Hi! My name is Jordan and I am new to esignal. I was wondering if anyone knew how to creat a Heating Oil crack in chart format and still be able to get elliot wave count. Please let me know...