Let’s analyze Nifty to check it’s current progress and future direction. For that we will see 1 hr chart of Nifty.
As per this char wave 1, 2, 3 and 4 looks completed and wave 5 is in progress. We tried to measure the possible termination point of Nifty. For that important level are coming are 12390-12532-12674. To understand the development from the low of 11931.35 we will see 15 min chart of Nifty.
From the above chart we can see that from the low of 11931.35 waves 1, 2, 3 and 4 is completed and 5 may be in progress. 4 ended at 12213.6 and when we put projection for 5th of 5th levels is coming as 12358-12403-12448. So the range of 12390-12405 becomes important. Let’s try to see what is happening in 5 min chart from the low of 12213.6.
In this 5 min chart I am assuming that wave 1, 2, 3 and 4 has ended. It is also possible that wave 1 and 2 has ended. This picture will be clear on tomorrow’s opening. When we try to project 5th of 5th of 5th, assuming that 4 has ended, it should not go much above 12420 which is 100% of 0-3. If it goes above 12420 we need to correct our counts. Also that movement should be with slow speed which is very important. In this case it is good to see chances to create short position as of now. In any case we are not advising to create long position as multiple degree wave 5 is near to end and we can expect a sharp reversal after that. If my count is correct we can expect a huge fall in Nifty. For that I need a confirmation from tomorrow’s move. If you are confident that reversal has happened without breaking above 12420, one can create short position.
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.