This is the first guest post from Manoj Kumar, Delhi
There is no weakness technically on the Nifty EOD’s Chart, However if we will look into the 15 mins timeframe with wolfe wave study applied over the charts the prediction levels for nifty comes to 5982. Current market sentiment is heavily bullish in nature. But Wolfe wave clearly tells that one more swift downfall is due on the shorter timeframe . And EOD Chart “Rising Wedge Pattern” suggesting that a expanding triangle is now taking place from 6067 to 6002.
Counting on Wolfe Wave:
1)As per wolfe wave study 6064.15+6004.25/2= 6034.20-6066.85-6020.25/2=23.3 Roughly 6011 spot will be swing reversal point.
2) Wolfe wave 2nd and 4th Wave are noting but parallel waves. 4th wave is currently running on and the 5th wolfe wave is likely to target 5982 spot zone on intraday basis. One can buy at this level with Stoploss 5967 (Spot) . If Nifty breaches the stoploss levels then immediately reverse your trade to positional shorts for a maximum target of 5859 spot.
3)If Nifty opens gap up or if it moves above 6059 spot on intraday basis then exit your shorts , because 5th wave is very closer to the support and possibly it can take strong support at 6059 (spot) and the rally can extend upto 6122 (spot) on the upperside
4)If a slow downfall occurs, one can expect a dip to 5982-6002 spot levels. Then again expect a rally to break the present high.
Support and Resistance levels
Support : 6011-6002-5982 spot
Resistance : 6059-6078 -6081 spot