In my previous analysis , I had mentioned the possibility of wave 3 and wave 5 extending, (both on smaller and larger degree). I had also stated the possibility of markets breaching the 18000 mark.
Above I have drawn the levels of 2.618 and 3.618 for wave 5 on the “minute degree” extending to 2.618 (coming at 18150 ) and 3.618 (coming at 18250)
“The amount of reversal that can be expected when both wave 3 and wave 5 extend “
As both wave 3 and wave 5 have extended, it is giving a strong indication of a strong bull market. However these extensions on both counts increase the likelihood of a larger correction or reversal once the trend begins to lose momentum. In my opinion, Traders should use caution and appropriate risk management strategies when trading in markets with extended waves, as the potential for larger corrections or reversals can increase.
However ONCE this correction is completed, expect a VERY strong bull run to resume as shown in above chart.
NIFTY Opening On 1.05.2023