On 3rd Nov, NF made a low of 4531. After that we saw 3 days of green closing with the week ending at 4790 and a high of 4834 made on NF last Friday.
Refer to my last post,
"NF can not make a new high without completing a bearish wave. This bearish wave need to in the form of a falling wedge which has not been found in the last 3 months."
I had mentioned of a bounce coming at 4690 zone but it didn't. Rather it hit 4531 and then bounced. I also thought that the bounce would find resistance at 34ema which now stands at around 4850. The daily 50ema is exactly at 4834.
Now, consider the lows of 4923 done on 9th Oct and join the trendline with the lows of 4531 on 3rd Nov. Create a parallel with the top at 5168 on 20th oct. What you will find is the highs of 4834 done last Friday almost touches the parallel line. (Please draw charts for yourself). This means that Friday's 4834 could be the tentative 4th point of wave and after that the fall in accordance with wave principle could NF back to a point on the lower trendline joining the troughs as taken. This point can be anywhere between 4360 and 4420. After that we will resume the bull run and hit 4800+ very fast. Once the falling wedge gets completed, the markets would not give any chance for fresh portfolio building as all lower prices would tend to vanish immediately. (Please do keep the "Mirror Pattern" ready for all references. You will find an astonishing similarity maintained till now. All wave principles are somewhat falling in line within that pattern.)
Also in my last post, I had mentioned "One thing to be noted, the India VIX. Its trading at multiyear lows of 25 (since its calculation started in Nov 2007). 25 has been seen as a major support and we bounced to 50+ odd levels from here in the previous 2 occasions. What I personally feel that the coming 3-5 months wont be easy for people who want to make easy money in the market. The intraday and intraweek volatility will tend to increase from hereon and witnessing a 5-7% correction in either direction may not be difficult."
We have already the seen the effect of it in the last 3 days. Please note it carefully. VIX shot up by 4 points in 3 days. The option premiums are very high as the volatility factor plays a very important role in it. DO NOT trade with stoplosses. Trade with a direction in mind. CREATE and BUILD PORTFOLIOS.
Happy Trading !!!
Refer to my last post,
"NF can not make a new high without completing a bearish wave. This bearish wave need to in the form of a falling wedge which has not been found in the last 3 months."
I had mentioned of a bounce coming at 4690 zone but it didn't. Rather it hit 4531 and then bounced. I also thought that the bounce would find resistance at 34ema which now stands at around 4850. The daily 50ema is exactly at 4834.
Now, consider the lows of 4923 done on 9th Oct and join the trendline with the lows of 4531 on 3rd Nov. Create a parallel with the top at 5168 on 20th oct. What you will find is the highs of 4834 done last Friday almost touches the parallel line. (Please draw charts for yourself). This means that Friday's 4834 could be the tentative 4th point of wave and after that the fall in accordance with wave principle could NF back to a point on the lower trendline joining the troughs as taken. This point can be anywhere between 4360 and 4420. After that we will resume the bull run and hit 4800+ very fast. Once the falling wedge gets completed, the markets would not give any chance for fresh portfolio building as all lower prices would tend to vanish immediately. (Please do keep the "Mirror Pattern" ready for all references. You will find an astonishing similarity maintained till now. All wave principles are somewhat falling in line within that pattern.)
Also in my last post, I had mentioned "One thing to be noted, the India VIX. Its trading at multiyear lows of 25 (since its calculation started in Nov 2007). 25 has been seen as a major support and we bounced to 50+ odd levels from here in the previous 2 occasions. What I personally feel that the coming 3-5 months wont be easy for people who want to make easy money in the market. The intraday and intraweek volatility will tend to increase from hereon and witnessing a 5-7% correction in either direction may not be difficult."
We have already the seen the effect of it in the last 3 days. Please note it carefully. VIX shot up by 4 points in 3 days. The option premiums are very high as the volatility factor plays a very important role in it. DO NOT trade with stoplosses. Trade with a direction in mind. CREATE and BUILD PORTFOLIOS.
Happy Trading !!!
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