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Nifty IT index

21 Jun 2021 ‚óŹ 10:55 AM

My confusion with the IT index is now at an inflection point. Either we are still ending a 5 wave advance or if prices go any higher then the blue markings mean that a larger 3rd wave started and we are going to extend a lot more. I am told that earnings growth should keep tech outperforming. But the chart shows that E=C reached, and the daily momentum crossed over to the sell-side. Now E cannot be larger than C so this is it. Weekly momentum has negative divergences and so that supports a possible pullback first before going higher. But rarely, sometimes we do get a 3rd wave without a consolidation. So this is it, if consolidation/correction is first before further highs in the Nifty IT index then that time is now. How deep a correction? Even a small one to 25000 would be enough [23.6% retracement]. We closed at 28367.

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