Friday’s price action marked a PAUSE. The basic analytical structure remains the same. Markets may move up as shown above but the DOWNSIDE is open for the MAIN correction of the impulse wave commenced from 16830 levels. The correction can be 25 to 40 percent of the whole move till 18220. However, we may move up 100-200 points on Monday to complete wave 5 of a smaller degree.
Suggest we take this as a Bull run of the 5th WAVE until proven otherwise(or markets fall below the start of the impulse at 16830
On Friday the markets made a converging triangle, in its fall. This converging triangle is near completion.
The ending of the converging triangle CAN mark the wave 4 culmination as shown above.
ABOUT CONVERGING TRIANGLES
As per Elliot’s Wave Theory, converging triangles CAN occur at Wave B, wave 4, and Wave X
In present circumstances, I am assuming it is wave iv as the full impulse is not completed as yet.
Converging triangles have 5 legs with the last wave having an overthrow(On Monday, the markets MAY open down momentarily, and then begin to go up for completion of the impulse wave.