Nifty opened 100 plus points gap up today and also broken upper line of “Complex Correction” (abc-x-abc-x-abc) progressing in “Contracting Triangle” shown in yesterday’s report ” Elliott Wave Analysis of Nifty for All time Frames Dated 18 Oct 2014 “. Let me show it on chart: –
This is Daily time bar Chart of Nifty showing move from 7118 which I am assuming as the start of wave 5 in yesterday’s report (chart 3) progressing as Ending Diagonal.
In yesterday’s report, (Chart 4), I mentioned that wave (3) of ED is completed at 8180 and wave (4) is in progress as Complex Correction in Contracting Triangle formation. I also mentioned that end of wave 4 is near and it will be confirmed after breaking of upper line of Triangle.
Today, Nifty broke above the upper line of triangle and remains above that line for whole session. Now we can assume wave 4 completed at 7724.
Further, total move from start 7118 to end of wave 3 (8180) is 1062 points. Wave (3) is just 110% of wave 1. Thus, we can expect minimum target of 8380 for last wave 5 as (ABC) as it is 5th wave of Ending Diagonal. But last wave (5) of 5 has to go at least above wave (3) (8180) to avoid 5th failure. I am not showing the reason for 8380 here on my blog.
Now, let me show wave (4) closely:
This is 30 minutes time bar chart of Nifty showing wave (4) of Ending Diagonal as complex correction. Nifty broken above the upper line of triangle today and also found support at same line (shown in red circle) and Nifty also seems completed (abc-x-abc-x-abc) cycle. So, we can assume this complex correction completed at low 7724 and new upside wave has started that can scale new high.