Its a very interesting set up and so bearish that you wonder if you getting caught up in a consensus bear trade with everyone around so negative...or am I in the wrong industry.

Yes Very True! and my thoughts have been the same too. Till 5050 is not broken there is no conviction to take a short trade nor to go long till the Island gets surpassed and we can count an extending Impulse.

Either of the two should happen to show us the way. Appears a Critical point.

Seems like i'm the only bull left out here, this time i'm using weekly charts, have already posted daily charts in my last post a few days back, wherein a dip to 5197 was mentioned and expected and it's done that yesterday and today.

For me this is bull market and i'll change my stand if 5094 were to break.
Tomorrow am expecting nifty to take support at 5130-5136 region in an intra day dip and rally to resume with an initial target of near 5500 and an eventual target of 6100 over next few months.

All bullish bets are off if 5094 breaks. The relevance of 5094 and 5197 can be seen in my last post and its chart and have attempted to attach the previous chart posted and my today's chart also with this post.

Kapil Tandon.

it would not let me post two charts, my previous post and chart is at the link www.atma-india.net/component/option,com_...mit,6/limitstart,54/

Unfortunately Kapil, EW analysis would have indicated that there is high probability of 5096 having no meaning at all. The Triangular formation right in the middle of the rally from 4760 - 5340, has been SCREAMING that this rally is not a trend and it is only correcting the earlier fall and therefore it is doomed to total and Complete retracement.

With 5050 being broken today, there is a very very very high probability that Nifty will be now moving to test 4760 over the next few days.

I am of the opinion that the decline from here will be rapid, swift and violent. We could see some very swift waves unfolding to the downside.

MURDER 1 had a successful release in 2008. Will we see MURDER 2.0 in August 2012?

Trade Well! Trade Wisely

Anant Acharya
www.appliedelliottwave.com

Dear Ananth,
I have today, started closing my longs - the broader picture is still of a bear rally with the nifty charts having taken a whack on 26th JULY 2012, i'll get back in as a bull again if 5350 is taken out.
It was worth a ride on bullish side though. I'll be waiting for either a failure of 5280 to open shorts or cross over of 5350 to get back in again.

The relevant chart of safe long target having been met is attached.


Kapil Tandon.

Brilliant work Kapil,

As I indicated before, I am looking for a Contracting Triangle to be unfolding and 5400 remains the level for a bullish breakout. The triangle appeared complete at 5348.55 and it appeared that the next move down has started.

However, you can see one of the major points of Elliott Wave Analysis and one of its weakest points..... Wave 'e' of the Triangle sometimes itself unfolds as a Triangle in itself. In such a case you see 4 Waves of the larger Triangle and wave 'e' unfolds as another 5 waves. In such a case you see the Contracting Triangle unfolding in 9 waves.

With that in mind with the narrowing range, I can count Nifty completing 7 waves so far in the Triangle and 2 more waves are yet to unfold.

The narrowing Trend lines indicate
1. If it is a Extending 'E' wave of a Contracting Triangle, then Nifty will be stuck in the range between 5350-5032.
2. If it is a CT then it will break down out of the Triangle in a Thrust Down very swift and fast.
3. If it is not a CT then it will NOT hover in this range.
4. Most important, thrust out of this range almost immediately to take out 5350-5397 range.

What it does this week will set the map for a very long term.