Do What the Market Tells you !!!! GO LONG

The price action of the last 2 trading days has kept all the Bears Dazzled. Let us look what these 2 day price action has offered us in the NIFTY charts::

- A 52 week High Closing ( Both on Weekly & Daily charts)
- An inside bar at the intermediate lows
- Increase in Volumes
- An Intraday high breaking the past high of 5182

All these bullish signals definitely force a trader to be long. Sensex is yet to confirm a new high. After doing so we have a target of 18500 for Sensex with wave 5 extension. Next few days price action will definitely confirm the trend. But for the time being dont even dare to go short.

Sensex 2008 Correction- A perfect Double ZigZag

According to the Elliott Patterns, Sensex made an exact Double ZigZag pattern in its recent 2008 major correction from 21206 to 7697. Its an A-B-C-X-A-B-C pattern with each A & C with 5 waves & all B & X with 3 waves. We can see that each B is 61.8% of its corresponding A and also X has retraces 50% of W. The pic alongside the chart gives the textbook daigram of a Double Zig-zag just to show how exactly the markets draw these patterns for itself.

The Magic of a 17 year Channel

When I see this 17 year Channel for Ambuja Cement, I really wonder how does market sense to change its direction when they exactly kiss these trendlines...The trendlines has held all the major tops & major bottoms in this period...Apart from the outer channel, the parallel middleline almost equidistant from the channel trendlines has also given major turning points...

Sensex!!! Finding Direction..

Sensex is hovering around its October top where NIFTY made an exact double top on Friday. 17500 is the key level now, above which we would have to change our count & Sensex would be in the 3 of wave (5). The targets would then be given by the uppper trendline of the channel. Also the equality of wave 1 & 5 would then suggets a target around 18500 levels. But this all happens if Sensex breaks the Oct high of 17500. Failing to do so, we still maintain our targets of 13500 for Sensex.

Dollar Index!!! On the verge on Channel Breakout?

The Dollar index rose sharply on Friday touching 76. It has already breaken the short term(blue colour) channel, which it had already done a couple of times before.Hence we would still wait for the upper channel breakout(yellow colour). A break above that & we should see sharp moves on the upside...