The Short Term direction came on RBI policy and gave a good downside move below 20dma at 5840 apprx then. Now let us take a look at new signals developing as of now and the trading probability .
1. Weekly Chart :
Though its speculative as of now but a probability that we may be trading in a Wedge Pattern since 4530 may be developing .
I will be updating some Long Term Counts and Probabilities based on this in first half of April.
2. Indicators :
Positive Divergence is visible in both Daily and Hourly time frame which is to be confirmed yet by the Price move.
3. Volumes :
High Volume activity is visible near the lows ,higher than that near recent Top , may be Buy side volumes.
4. Elliott Wave count in Short Term :
Trend is Down as of now. Probability of Nifty bottoming out (at last session low ) or nearing the bottom (an upmove followed by retest of bottom / below it) is high. Close above 5750 or trading above 5792 will validate the reversal for a Positional Upmove in the Short Term. Hedged Longs planned on above probability may prove to be a good short term trading opportunity