Breaching 5690, means that we have breached the end of wave 1 which was at 5690,this implies that wave 4 scenario gets cancelled.It implies that wave 3 continues.( n we r in wv 2 of wave 3)Which means, that once this upside ends,(it may be 5800/5900 or wherever it goes, certainly not above 6181)we will have a significant downside, will take a few months,but it will mostly break 4800.Thats why I call it more bearish in medium term.
I have seen similar formation on both, Bank Nifty and Reliance charts, guess wud be present on many other Nifty stocks as well.
Nice Chart. Once price has traded into territory of wave 1, it can be dangerous to automatically assume that price has entered an extended wave 3. That's surely a possiblity but one must consider the possibility that the move was just an ABC and hence a correction leaving the window for a move to new high/lows.
ReplyDelete@bhattidaud (from twitter)