Outlook of Nifty for 20 June 2017 Onward – Perfect Example of Triple Zigzag Correction

| June 20, 2017

Nifty opened higher 9626, bounced sharply after opening and traded with strength for rest of the day. Nifty bounced more than 80 points to register day’s high 9673 before closing 69 points up at 9657.

Friday, Bounce above 9709 was expected in coming days with some confusion in lower range. So, 9700 Jun call taken around 30 was suggested to hold in light quantity and hold without stoploss till further updates and suggested to wait for clarity in pattern to initiate any confident trade. Let’s have a fresh look at latest charts for further scenario.

Today I am analyzing bounce from 24 May 2017 low 9341 and earlier wave counts are explained in my previous  analysis report Nifty can be Bought in 9608-9568 Range for New High Above 9709

Elliott wave counts of Nifty on 30 Minute chart

Elliott wave counts of Nifty on 30 Minute chart

This is 30 minute time bar chart of Nifty covering bounce from 9341 which I am expecting as start of new impulse. Pattern completed exactly same as we expected.

It seems wave (1), (2), (3) completed till 9709, wave (4) completed from 9709-9560 as Triple Zigzag Correction and wave (5) may be in progress from 9560. Wave (4) retraced slightly more than 38% and wave (5) seems an Impulse in progress.

Minimum 38%-61% projection for wave (5) is placed at 9700-9787 whereas top of wave (3) is 9709. So, 9709-9787 is the minimum target range we can expect for wave (5) in coming sessions.

Let’s me show the completion of Triple Zigzag Pattern deeply on separate chart and will also analyze the progress of wave (5) for more accurate levels and breakeven point.

Elliott wave counts of Nifty on 15 Minute chart

Elliott wave counts of Nifty on 15 Minute chart

This is 15 minutes time bar chart of Nifty covering decline from all time high 9709. Again there is no change in conditions.

It seems a Triple Zigzag Correction is completed from 9709-9560 (abc-X-abc-X-abc) and next impulse has been started from 9560. This Triple Zigzag Correction completely exactly same as I expected a week before but last (abc) cycle of this Triple Zigzag extended to its maximum limit (touch lower line) and took more than normal time.

Breakout from Triple Zigzag Correction: Price never entered in the pattern again after breakout from upper line. It is the personality of Triple Zigzag Correction that “price never enter again in the pattern after giving breakout from line joining waves (X)1-(X)2”. Read the chart carefully.

Click the link read complete explanation of Triple Zigzag Correction http://sweeglu.com/triple-zigzag-correction-of-elliott-wave-theory-explained-by-deepak-kumar/

The bounce stared after completion of Triple Zigzag seems Impulse where wave (i) completed at 9615, (ii) completed at 9566 and wave (iii) may be in progress from 9566.

23%-38% retracement of progress of wave (iii) is placed at 9647-9632. So, 9632 is the point below which we can think of any reversal and same can be referred as stoploss for longs, whereas 9647-9632 is the range from where Nifty can bounce again for new high.

Conclusion:

This Triple Zigzag Correction completed exactly same as I expected a week before but last (abc) cycle of this Triple Zigzag extended to its maximum limit (touch lower line) and took more than normal time. This extended last (abc) wave breached our stoploss of 9563 for earlier trade by 3 points otherwise the pattern we were expecting was exactly same.

Now, Nifty has possibility to bounce minimum till 9709 which further can extend towards 9787 and 9647-9632 is the range from where Nifty can bounce again. And 9632 is the point below which we can think of any reversal and same can be referred as stoploss for longs. 

Trading Point of View:

According to conditions on charts:

  1. Nifty June 9700 Call if bought in light quantity around 30 can be hold with stoploss of 9629 spot (3 points below 9632) expecting minimum targets 9709 which further can extend towards 9787.
  1. Nifty if decline in 9647-9632 range can be bought with stoploss of 9629 expecting minimum targets 9709 which further can extend towards 9787.

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Category: Nifty

About the Author ()

Deepak Kumar is an independent Technical Analyst, regular practitioner and Trainer of Elliott wave theory applying Elliott's Wave Principles on Indian Markets successfully since 2011 and made many accurate predictions. He is also the author of book "Practical Application of Elliott's Wave Principles by Deepak Kumar"

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