Weekly technical Analysis for week ended 25^th October 2014

I am writing this update after nearly one month, I was out for a fortnight, and was not in a position to post the updates. But was following the market, it seems nothing much seems to have happened in the mean time. Nifty is nearly at the same level when I left. This week we would see what the structure as of now is giving considering the pattern formed. Where there is upside potential or we have all chances of market moving down from current levels.

During the week which was a truncated week market opened at 7896 made a high of 8031 and finally closed at 8014 nearly at the high of the week which signifies that bulls were successful in maintain the market at higher levels, bears tried hard but were not position to take it down. During last some weeks the market has been weak it has gone below 20 day EMA, 50 day EMA but they has found support at around 100 day EMA and from there reversed to move above the 50 day EMA and 20 day EMA signifying the strength of the bulls. But the up move consists of 2 gap up openings which did not give much chance for traders to make money in the ensuing market. Now we have to see where market goes on to make a new all time high or falls from these levels. currently it seems that the market has a good support at 100 day EMA which happens to be at 7690 till market is above it we can expect the market to inch upwards. Any breach of 100 day EMA would open gates for the market to move towards the 200 day EMA. World market seems to be forming good bearish patterns and which seems it might affect the movement of our market but the pattern our market are important.

We would now see what is in store for us as far as Elliott wave is concerned.

The elliotte wave update is given in the two charts above. The first chart is the long term count and the second chart is the wave breakup of the current wave.

As per the pattern in appears that we are in the third of the third of the fifth wave. It seems that we might have started the wave-iii of wave-3 of larger wave-5 of the larger wave-C. As it has moved below 7855 we have to change the wave structure as the movement took it into the area of the wave-1 we have to alter the structure to the lover wave structure. As of now it appears the same as the market progresses we might have to change the structure if we move below the last weeks low 7723 then it appears that we have to rework the wave structure. If the wave-3 has started then we can expect the market to move towards 8510 and 8700 levels, but if market does not go near these levels at-least 8510 then we can expect bears can take the market all the way toward 100 day EMA or the 200 day EMA. Till then enjoy the uptrend.

May all be Happy and at Peace

M.Mahiidar

Enjoying Life

Trend is Friend.