Currently we are seeing irregular correction on nifty daily chart.
Lets see what is irregular correction ?
In this type of correction, Wave B makes a new low. The final Wave C may move up to the beginning of Wave A, or above it.
Now lets see the nifty chart below
Current move is wave C and wave c should form five wave formation and we are not seeing any five impulsive wave formation in the nifty chart so we can assume that this may be diagonal in a,b,c,d,e formation and if we find any negative divergence formation, will provide clue that short term up move is in mature stage. As per fibonacci ratio rule of Elliott wave wave C should be either 1.62 x Wave A or 2.62 x Wave A.
As per nifty chart above Nifty has given multi year breakout above 6350 level. The next resistance coming on the chart is around 6480-6550. I hope that this up move should take prices atleast towards 6440 levels. The multi year trendline is also coming around 6500 level. But the upper trend line value will be increase day by day if nifty try to rest here for few days.
Learn the fantastic way of Elliott wave and get free support with one recommendation on Nifty and two recommendation on stocks everyday and its absolutely free. Just join our trading club and be different from crowd. for more details feel free to mail at- eyesnifty@gmail.com
Lets see the picture on larger time frame in below chart.
See in this chart and if this is irregular correction than as per elliott wave Fibonacci projection this move should terminate around 6609 where 1.15 x wave A is placed or 1.25 x Wave A which is around 6781 which will be maximum stretch in the up move i think. 6345 is now strong gap support for any short term reversal on hourly or daily chart.
Good Luck.........
