Nifty Elliott Wave Update

MARKET UPDATE: 21 SEP 2020

NIFTY
TIME	TREND	UP LEVEL	DOWN LEVEL
Medium term trend	Up	11800-12238	11185-11111

Explanatory Note : Wave 4 done wave 5 started

Nifty closed the week positive. The weekly momentum has a cross over to the sell side despite the pattern of higher highs and higher lows is not certainly a trend reversal. This often happens around the 4th wave as 4th waves cause a loss of momentum short term. But as the 5th wave picks up the momentum indicartor usually crosses back, sometimes it may form a divergence too into the 5th wave. 11111 and 11185 are the last two higher lows and this pattern holding the trend should remain positive. We should soon attempt to move back to the upper Bollinger band at 12238

 

Bank nifty has its previous low at 21403 and 20dma at 21384 and its daily momentum did not cross over to the sell side yet despte the weakness in the sector. So on weekly charts there is no trend reversal medium term.