NIFTY Opening On 16th Jan 2024
NIFTY is in subdividing mode, which is akin to a massive blowout. How high can the markets go in this run up. How big the corrections be in these extensions of cycle wave V.
In Elliott Wave Theory, Cycle Wave V extending implies a prolonged and powerful upward move within the broader market cycle. Elliott Wave Theory suggests that market price movements are influenced by collective investor psychology and that these movements unfold in a series of waves.
When Cycle Wave V is extending, it generally means that the final wave of the larger cycle is experiencing a more significant and prolonged upward movement than initially anticipated. Here are some characteristics and expectations associated with an extending Cycle Wave V:
-Extending Waves tend to last longer than the typical waves. However , this robust upward movement will be marked by volatility, and one should be prepared for that. Positive economic indicators , earning reports etc may continue to fuel the markets.
However one must keep in mind that market euphoria can take the markets HIGHER than what is warranted by fundamental.
As the saying goes for extensions- The higher you go, more attention on shorter time frames.