March 14, 2017

Neowave analysis of the market

....Our upside target was nothing but NEoWave pattern implication for breakout from the Neutral Triangle as we showed on the chart above. It is roughly 75% ratio to its largest leg, which was the “D” leg. This target calculated levels of 30500 (Nifty 9500), i.e. a new high for the Index.

Last year, based on the NEoWave pattern implication for the Triple Combination inside the “D” leg, we had calculated 25000-500 as our downside target for the “E” leg. We, later, said that Dec’16 low of 25718 was within 5% tolerance allowed under NEoWave, and accordingly, we turned +ve from Dec’16 onwards.

.......

In any case, this month’s high of 29146 is already just 4.5% short of 30500. Therefore, the question is whether the expected “g” leg, or the last leg of the post-Dec16 Diametric, would lead to a major top for the market this month.


Read more at http://content.icicidirect.com/ULFiles/UploadFile_201731410376.asp

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