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 BROKEN ABOVE 78% @ 11384 and is NOW EXTENDING TOWARDS ALL TIME HIGH. Wave ‘B’ is most challenging wave in Elliot Wave analysis to predict exact termination. So be cautious on the current uptrend.
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. The uptrend can continue towards all time high or terminate from current levels. So we need to wait for sometime for a good risk reward entry. Those holding longs should keep appropriate trailing stop loss.
FOUR HOURLY CHART