BankNifty - 900 Points Bounce - Leading Diagonal Scenario ?

3 de dez. de 2024

As we discussed on 1st Dec 2024, an upside move towards the recent high was anticipated. If the recent high holds...then what?

I'm glad to see we got a strong 900+ points bounce in Bank Nifty Index since Monday, 2nd Dec 2024. This aligns exactly with our weekend discussion.

Elliott Wave Analysis (Advanced School of Thought)
This could be a classic market scenario to include in my upcoming book. If the index halts below 52760, we might be witnessing a Leading Diagonal Scenario:

From the highs of 52760's
Referencing the bible book of Elliott Wave by Frost & Prechter (Page 41, Figure 1-21):

Snapshot captured at 11;49 am / 3rd Dec 2024




Leading Diagonals occur at the start of a decline.
They can retrace up to 99.99% but cannot exceed 100%, which would be 52760 in this case.

Current Scenario:

• A Leading Diagonal appears to be forming from the highs of 52760.
  
• It has retraced until today's high of 52748.
  
• Can This Be a Double Top and Leading Diagonal Scenario at 52760?
  

Line in the Sand (Stop Loss):
The index cannot cross above 52760. If it does, the pattern is invalidated, and we’ll need to reassess.

Market Whispers! ...Can You Hear Them?


Regards,
WaveTalks
Abhishek

3 de dez. de 2024

Trade fechado manualmente

2:25 pm / 3rd Dec 2024

As Highs are taken out so Idea is no more valid but be careful on long positions if fall resumes & drops below or opens gap. down next day - 52600 or gap down opening below 52600 next day.

As a trader, you need to be careful . Holding 52600 - Bulls will have strong grip.

Thank you