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 completed and broken below the uptrend line. A Five wave seems to be either completed or near to completion.
Based on the above conditions, the following strategy is recommended:
Nifty after hitting 11540, a big black candle was formed suggesting a short term reversal. 11390 is the immediate reversal point and 11310 is the medium term reversal. Nifty is near to the uptrendline and break above this would confirm bearish view.
Aggressive strategy 1 : If Nifty breaks below 11390 (immediate reversal) then “sell on any rise” with Stop loss of High of the day for a target of 11314 which can extend towards 11200 in coming sessions.
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.