Instead of our earlier “Head & Shoulders’ pattern”, it seems a ‘Flat’ correction is in progress and in which Wave ‘A’ completed Wave ‘B’ seems to be either completed or near to completion in the range from current level or of 11687-11750.
Based on the above conditions, the following strategy is recommended:
There is no change in Nifty view. Nifty crossed above previous high of 11570. So, minimum target for the 5th wave is done. However, it can extend towards 11687-11750 (All time high). Daily/Hourly chart shows negative divergence on RSI suggesting caution ahead and impending reversal. Risk reward for longs are not favourable at the moment and not recommended. We need to wait for a reversal pattern to emerge for a confident trade.
Trading strategy suggested in this report is just to show how one can forecast markets using various rules based on Elliot Wave counts for practical trading with good Risk Reward. These trading strategy are not trading recommendation. Any trade based on these trading strategies will be at your own risk and we are not responsible for any loss or profit for the same. Take your own decision. We are not SEBI registered company and we are not providing any calls.