Elliot wave and price projections at its classical best. What are the next projections?

NIFTY FUTURE- Review and Trading Analysis-21st June

NIFTY FUT –  marked the classical  Elliot wave and price projection reversal in the recent downmove.

While many traders would had earned trading shorts it is to take a worthy note on how Elliot wave projections gave an entry signal at much higher levels and how our traders capitalized on them big time.

Readers will recall that we posted the charts few days back (Refer to our blog chart analysis for 17^th June). We mentioned that NIFTY FUT has completed wave 3 and was marking a retracement on wave 4.

The beauty was that the wave 4 topped out exactly at 61.8% retracement levels giving an much earlier entry before the crash happened.

Yes the FED stand on QE made sure that global markets tanked big time and Indian markets were no exception too. Yes this help cover a huge range of wave 5 move in a single session 2. No denying the fact.  What we were expecting as a gradual downside move was largely covered today.

Now how price point analysis confirmed this. Refer to the same blog post. We had mentioned that while NIFTY FUT witnessed a strong island reversal pattern we mentioned that 5870 is the key hurdle on upside and only a clear of that will confirm as strong upside reversal.

Markets during the course of the week made a high of 5867.5; exactly below that level and failed to clear that zone on the upside. This confirmed a respect of wave 4 retracement too when 5835 was breached on closing basis.

Now where are markets headed from here? As we say one picture is worth many words and they always act as a ready visual reference to your trading.

NIFTY FUT CHARTS-20TH JUN CLOSING- SWING AND INTRADAY PROJECTIONS

Now Fut closed exactly at the first target of wave5 at 5640 trading levels. Below that the next swing projection is 5580 and if that is breached on a sustained basis we are looking at hitting near 5400 trading levels.

On the upside  On the upside swing wise immediate hurdle will be 5690-5700 trading levels and a clear of that will indicate some sort of reversal only.

From an intraday point of view 5640 will also act as a TREND DECIDER and sustaining below it shorts will be active again. Intraday reversal zone is 5670 levels  on the upside. On the downside expect support to emerge out at 5580 levels and a breach of that will result in fresh shorts.

Trading levels for the day:

POWERTRADE BEARS LAST STAND POINT OF THE DAY ----- 567075  sustaining above which it will target 5695,5730
POWERTRADE TREND DECIDER OF THE DAY ------- 5635-40
POWERTRADE BULLS LAST STAND POINT OF THE DAY------- 5600-05
Breakdown and sustaining below POWERTRADE BULLS LAST STAND POINT OF THE DAY will open target for support of ---- 5580,5535