Today we witnessed a bear run resulting in a big red candle in bank nifty.
In smaller time frames one can notice the day's low was above yesterday's low level.
The last two day's price action can be fit into waves 1 & 2 of the next up trending wave.
In that case, we can expect a gap-up/positive opening in our markets (SGX is minus 50 points right now) and a continuous up move towards 44170, 44320 & 44560 levels. In this set up my stop loss will be below yesterday's low.
(If the market behaves negatively in the first 15 minutes tomorrow then today's fall may be downward wave 1 in Elliot waves and massive wave 3 on the downside can be witnessed. In my view, this fall is less likely and I have a strong bullish view of our markets)
Happy trading... Trade with an appropriate stop-loss.
In smaller time frames one can notice the day's low was above yesterday's low level.
The last two day's price action can be fit into waves 1 & 2 of the next up trending wave.
In that case, we can expect a gap-up/positive opening in our markets (SGX is minus 50 points right now) and a continuous up move towards 44170, 44320 & 44560 levels. In this set up my stop loss will be below yesterday's low.
(If the market behaves negatively in the first 15 minutes tomorrow then today's fall may be downward wave 1 in Elliot waves and massive wave 3 on the downside can be witnessed. In my view, this fall is less likely and I have a strong bullish view of our markets)
Happy trading... Trade with an appropriate stop-loss.