Nifty – I am giving first the immediate view and then the targets.
As shown in blue above, the 3rd wave extended and how(wave 3 extension of 4.236 which in my experience is maximum). Also, the markets are EXTREMELY OVERBOUGHT by traditional indicators.
Will the markets correct from here WITHIN the ongoing bullish elliot wave count scenario or will it continue upward as an extension?
We need to be cautious in the present point in any case as the wave count and the highly overbought condition is calling for at least a 100-200 points correction on the nifty.
Can wave 3 extend further? Traditionally wave 3 reaches around 2.618 of wave 1. However, in rare cases, it reaches 4.236, where extreme caution is required for DAILY TRADERS at least, as the markets are ripe for a correction.
Above I have given a conservative wave count. Other parameters should also be checked before investing by an individual investor
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