Elliott Wave Update for Nifty

Nifty Poised for US Elections ??

Nifty has been in a consolidation mode since the last month and a half, making a higher base at 8550, a level which assumes significance due to the number of times it has been tested over the previous three months.

Nifty may continue to find strong support at around 8550 which may act as a make or break pivot for Nifty.

With US elections a few weeks away, the  TO on Triple Trend Oscillator are aligned identically as they were just a few weeks before the Indian elections during 2014.

Both, the long and medium TO are placed above zero indicating a bullish bias. The short TO however is showing weakness in the near term which is reflected by the corrective phase of Nifty being witnessed now.

It remains to be seen if the indices will witness a breakout post the outcome of US elections, as it did post Indian elections.

The Elliott wave count may  suggest wave 5 of 3 fell short of its target of 9110 to end 8960 and  we may be witnessing wave 4 correction.  The impending wave 5 continues to have higher target of 9840, we may see during 2017.
See post  : http://eqtrend.blogspot.in/2016/08/elliott-wave-targets-for-nifty-9840.html

Nifty Weekly

Elliott Wave Targets for Nifty : 9840 ??

Nifty completed  sub wave  5-3-4 with a triangle (a-b-c-d-e)  to start   wave 5-3-5. Typical of wave 4, the price pierced the trend line momentarily and reversed to start the new wave.

The major wave 5 is likely to have an extended wave count of 1-2-1-2-3-4-5-4-5.

Based on the principal of wave equality the present wave 5-3-5 is likely to have a target of 9110 ( wave 1= wave 5).

With  wave 5-3 being completed at 9110 it is now possible to derive the overall target of major wave 5 which could touch 9840.

Brent Resumes the Up Trend ??

Brent found support at  $42 levels and has reversed to test $47 . In spite of heavy short built up, the reversal may have come as a surprise as traders scramble to cover their shorts, in the process propel the prices higher.  On the daily charts,  Brent may find resistance at $47-$47.50 levels and may consolidate between $45 to $47 levels before the next move.

On the weekly charts, with the momentum picking up, a crossover of the trigger (yellow dotted) line above zero may indicate resumption of the uptrend after a brief correction from $52 to $42, a 38.2% retracement, common  during  an up move.

With the long term trend gradually picking up,  higher targets nearing $65 cannot be ruled out in the next few months. 

We had earlier indicate the possibility of Brent correcting to $43 levels and resuming the uptrend . See post : 

 Can Crude Move Higher, Post Correction ??