Important points to note :
- A long term low is in place already at *restricted*. Price should have a strong up – move on the larger time frames.
- The correction ended with an ending diagonal in wave 5 of C. This means the initial target for *** is above the origin of the ending diagonal i.e. 656.
- Whether its a good time to get in right away now is a more difficult call. Read point no. 5 below. Even if price does decline it is a buying opportunity. So scaling in from current levels is the best bet so one does not miss out.
- Given the larger term structure, this is an excellent opportunity for long term investors as well.
- The 2 Hour chart shows a possible completion of minuette degree wave 1. Which could be followed by a decline in minuette degree wave 2 to about 550 – 560. That level may be an excellent level for traders to take long positions.
- The most important takeaway is that an ending diagonal completed the entire downward correction to 483. Price should move rapidly up. It may do so after a decline to 550 – 560 or straight away.
Conclusion : Investors should scale in from current levels and Traders can wait till 550 – 560.
Sometimes, price sets up quite beautifully, and the market offers us one of these seriously high probability trades that almost beg to be taken. This is one of them, but it may not happen immediately so keep your alerts at level mentioned and pounce when it does. Read on..
*restricted* has declined from a wave 3 high at 1299.90 in what is a crystal clear ABC correction, with B taking shape of a triangle. Price is now thrusting lower from the triangle in wave C.
Target for *restricted* to end its decline is at 900 – 915.
There is excellent confluence of support in this area 900 – 915 for a buy. 4 indicators of confluence point at this area specifically.
- Wave C = Wave A at 907.
- Lower Line of Trend Channel comes in at about 900 – 910
- 4th wave of 1 lesser degree at 905.50
- 2nd wave of preceding impulse wave at 912 (this is also important as during the preceding impulsive up move, wave 5 was the largest wave).
Conclusion : Buy at 900 – 915 for a strong move up. Targets will be informed in subsequent posts.