Today’s NIFTY ANALYSIS. Both the 3rd wave and the 5th wave have extended which shows a PROBABLE STRONG BULL RUN. However WITHIN this bull run the markets should correct the full length of 5 waves.
This correction CAN be substantial. Above I have drawn the two rectangles for correction. The orange one is bare minimum and the purple one a big possibility.
When both Wave 3 and Wave 5 in Elliott Wave Theory extend approximately 2.618 times the length of Wave 1, and the market starts correcting, it suggests a significant reversal in the prevailing trend.
The prevailing bullish trend commenced from 16800 and completed at 18450 or a run of 1650 points. Now the markets, should correct into WAVE 2 (The previous RUN UP of 5 waves constituting WAVE 1). This correction , as per the theory , will be of roughly 25 , 38, 50 , or 62 percent of 1650 points
NIFTY Opening On 17th May 2023