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A little dense image..
Open image in new window (zoom if needed) and read slow.
first for the applause...! Today morning we did 3051.5 (missed target of 3055 !!)
In the image you can see the small channeling action as well as the larger channels and how they cracked.
ok all that is history lets look ahead..
We cracked the larger channel in last 30 mins of trading.
If nifty remains under this channel for longer we got a larger dip coming.
Also note that the rise form 3000 to 3050 was much slower than previous upmoves.
This points to 2 facts.
1=>Either we are seeing a terminal in 5th wave which started 2785
2=>or this upmove to 3050 was some complex correction and much more upmove is pending.
2 would get ruled out if tomorrow nifty cracks 2990-80 and then we would see a much larger dip then.
The other option is that tomorrow we rise again to reach close to the highs and then make a final deeper sell off.
Use channels and % retracement to determine. The caution alarm is already ringing..!
Safe guard your investment.
In earlier posts had commented that CNXIT and NSEBANK are weak. Today we saw CNXIT making a large fall and can expect more red from NSEBANK in coming days.