Yesterday Nifty expected to bounce above 12000 and today Nifty made a high of 12004.8 from the yesterday’s low of 11832.5 and after that came down to 11960.1. Let’s understand this up move in 15min chart of Nifty.
From the above chart it was very clear that a reversal has happen from the bottom of 11832.5 and made a high of 12004.8 now let’s see chart of Nifty in the smallest possible time frame of 1 min to understand the up move more clearly.
From the above 1 min chart it looks like some impulse has been completed from the low of 11832.5 till 12004.8 and some retracement has started. Mostly this impulse has been completed. Here 1 is very small compare to 3. If the impulse has been completed we can put Fibonacci retracement to measure possible upcoming correction. Now we can expect some correction in the zone of 11940 to 11920. I mark possible way of correction with red lines.
If we can see corrective pattern in/near the zone of 11940 to 11920, it will be a buying zone for Nifty for the target above 12157 and higher.
Disclaimer:- Idea and views given here are only for educational purpose. It is just to show how Elliott wave analysis can be done in practical example. Do not take any trade only on the basis of idea given here. Consult your financial advisor first before taking any trade. We do not take any responsibility for any trade taken by whatsoever means or purpose.