Elliot Wave Analysis for Nifty | Direction for April 7thNifty 50 is in 4th Wave of the Ongoing Cycle. Now as per rule of Alteration, if second Wave was sharp, fourth Wave is most likely to be a sideways. Also if second Wave was complex, 4th Wave is more likely to be simple.
Considering these rules, it is evident that current Wave could be a flat Wave of either simple type, or running flat type or extended flat type,
Amongst three, extended flat Wave is very less likely because it can breach the tunnel. The tunnel is created using peak of Wave 1 and Wave 3 and drawing a parallel to it that touches bottom of Wave 2. As per elliot Wave analysis, Wave 4 is very less likely to breach this Zone. Thus, it will stay within it.
Now within it, it doesn't have much room to go down. So only regular flat or running flat is possible.
Amongst the two, my assumption is it can go on to become a running flat Wave.
For that, it can go as low as fib retracement level of 61.8% at 22697 mark. From there it can most likely reverse and complete the wave B of Wave 4. Thereafter it will again fall to Wave c which since it will be a running flat, will end above the bottom of Wave A.
This is my analysis. Open the community views.
Discl: for learning purposes only, not buy sell recommendation.
