Our weekly outlook on NIFTY had clearly mentioned about a potential Head & Shoulders Pattern on the Chart. Wave ‘A’ and Wave ‘B’ (right shoulder) seems to be in progress and is NOW EXTENDING. Immediate Resistance is now @ 11384 which is 78% retracement of the fall.
Based on the above conditions, the following strategy is recommended:
“Aggressive Strategy : Follow up- 3rd wave Impulse is in progress and therefore any small dip towards 11200-230 is a buying opportunity with strict stop loss of 11180 for a target of 11385 which can extend towards 11760.“
We did not get an opportunity to buy at our desired levels. Nifty is near to 78% retracement and therefore Risk Reward is not good for longs. We need to wait for a Reversal pattern to emerge for taking a fresh position.
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.