Let’s analyze chart of nifty from the low of 11090.65 and try to see what pattern is there. For that we will see 1 hour chart of Nifty
There is change in wave count from the previous report.
In this chart we can clearly see that wave 1, 2 and 3 is completed and wave 4 is in progress from 12157.75. It was confusing development within wave 3 where is gave some indication that 4 has been made but in actual that was 4 of 3. But last pattern which looks like ED in 5 makes it almost sure that impulse as wave 3 has been completed. After that reversal has been seen but the speed of that is very slow. Normally reversal after ED is very fast. Previously I was expecting LD but current fall and development in Nifty has negated the possibility of LD. So we need to check what pattern is made after the top of 12157. We will see that development in 15 minutes chart of Nifty.
We can see that from the high of 12157 pattern looks like Leading Diagonal (LD). The sub wave of LD was not very clear. Most of the situation was favoring LD and within LD wave 1, 2, 3 and 4 looks completed and 5 may be in progress. But expected wave 5 extended more than 100% and negated possibilities of LD. SO now pattern looks clearer and it is some sort of correction. In the given chart you can see that it was a complex correction in the form of abc-X-abc as double zigzag. You see in 1 hr chart this correction almost made a low of 11832.5 and 38% retracement of wave 3 is coming at 11835 which is also an indication that is more like a correction. After the low we can see recovery with speed and that may be an indication that current correction is over. There are good possibilities for new high above 12157 Currently if you get a chance, one can buy near 11880-70, keeping SL below 11830 for the target of 12000-12157 and above with confirmation of the corrective pattern..
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.