As discussed yesterday, Nifty spent some time correcting upwards into wave 4 in what looks like a zigzag correction. The last leg of this UPWARD correction can go even till 18700, from where we should start downwards again to complete wave 5 of the final wave C in the flat correction.
In a nutshell
1. We are in all probability in a bull run.
2. Within the bull run we are now correcting into a flat correction, which may take us down till 18500-18550.
3. The above-mentioned flat when completed will take the markets up as wave 3 which will in all probability be extended and fast.
WAVE EXTENSIONS
These occur normally in wave 3 or wave 5 and sometimes in both. With the theory of fractals in mind, on a smaller time frame, BOTH waves 3 and 5 have extended in the past, therefore this expectation.
Extensions tend to exhibit a strong impulsive price action. Retracements are normally small and quick.
RELENTLESS MOVEMENT IS THE KEYWORD
Market participation can be expected to be high in the time to come.