NIFTY – The first chart is an overview and the 2nd one is based on immediate price action. The bottom made yesterday already falls precisely on the first fibbonacci level. This does raise the possibility of the bottom holding from here on.
However one must keep the 2nd possibility in mind too that the 3rd zigzag is pending and we may have another round of correction that may be 100 points below the previous bottom.
Whatever the case may be, markets are rearing to go upward and any correction is to be seen as a blip in the ongoing bull run.
WHAT THIS MEANS
The bull run is intact and any correction is within the ongoing bull run
A WORD ABOUT ZIGZAG CORRECTION
A zigzag correction is a 3-wave move ABC as a contra move to the main trend. The zigzag can be a simple single ABC move. OR it can be a repetition of the 3 wave move 2nd or even 3rd time. Also even if the 3 zigzags are completed, there is always a possibility that the 3 zigzags may be part of a larger complex correction.
Suffice it to say that one always needs to look at the larger picture with multiple factors affecting the markets. Technical indicators, chart patterns, and political upheavals around the world all have a direct impact on the markets.