Since Thursday’s low was also the low of the week, we may consider the low of 26407 (Nifty 8121) as a crucial level on downside even for the fresh week. Remember, Thursday’s low was hit after a gap-down open post Fed policy, but Index also bounced strongly from the low.
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However, we can say for sure that no further upsides can open until Index can crack decisively above the 50%-mark, and no further downside can open until it can decisively break below last week’s low.
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Index made several attempts to cross 50% retracement level in the last 3 weeks. If b-leg ends without crossing 61.8% mark, it would mean that the a-leg fall was “impulsive”.
If a-leg was “impulsive” and b-leg corrected less than 61.8% of a-leg, then the larger “e” could be developing as a Zigzag. As per NEoWave rules for the Zigzag, the c-leg of a Zigzag should break below the bottom of a-leg, i.e. Index should hit a new low for the fall.
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Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016122012334.asp
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However, we can say for sure that no further upsides can open until Index can crack decisively above the 50%-mark, and no further downside can open until it can decisively break below last week’s low.
....
Index made several attempts to cross 50% retracement level in the last 3 weeks. If b-leg ends without crossing 61.8% mark, it would mean that the a-leg fall was “impulsive”.
If a-leg was “impulsive” and b-leg corrected less than 61.8% of a-leg, then the larger “e” could be developing as a Zigzag. As per NEoWave rules for the Zigzag, the c-leg of a Zigzag should break below the bottom of a-leg, i.e. Index should hit a new low for the fall.
Read more at http://content.icicidirect.com/ULFiles/UploadFile_2016122012334.asp
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