Structurally, remember, we considered the post-Budget development from 29th Feb’16 could be either a 7-legged “Diamond-Shaped” Diametric OR a 9-legged Symmetrical formation.
While Diametric Formation would require a “higher” top for the g-leg (as compared to the high of e-leg at 26101), Symmetrical formation would require a “lower” top to be made by the g-leg.
Market may be experiencing jitters on account of State election results coming in on 19th May’16 in the forthcoming week, and therefore, its trading in a volatile or indecisive until the results are actually known.
If the g-leg ends at a “lower” top compared to e-leg, then the rally post-Budget would be considered as 9-legged Symmetrical, similar to the pattern we saw 15th Jun’15 to 20th Aug’15 last year, which we labeled as 1st x-wave (or B of ET).
As we mentioned, Symmetrical formation could look like a “Rounding Top” similar to what happened in the 1st x-wave (or B or ET). Market’s response to the Election results coming on 19th May could help clarify the structure.
Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016516104029.asp
While Diametric Formation would require a “higher” top for the g-leg (as compared to the high of e-leg at 26101), Symmetrical formation would require a “lower” top to be made by the g-leg.
Market may be experiencing jitters on account of State election results coming in on 19th May’16 in the forthcoming week, and therefore, its trading in a volatile or indecisive until the results are actually known.
If the g-leg ends at a “lower” top compared to e-leg, then the rally post-Budget would be considered as 9-legged Symmetrical, similar to the pattern we saw 15th Jun’15 to 20th Aug’15 last year, which we labeled as 1st x-wave (or B of ET).
As we mentioned, Symmetrical formation could look like a “Rounding Top” similar to what happened in the 1st x-wave (or B or ET). Market’s response to the Election results coming on 19th May could help clarify the structure.
Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016516104029.asp
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