Indeks Nifty 50Singkat
Short
Before i write something, i would like to add to the trollers, the last time around when i did mention market could end up with new life time high lot of people started to laugh and send me messages, so this time around i have them to laugh once more as markets will soon reverse and test the lows at 7000
The weekly chart reveals the entire price history of the Nifty 50 since its inception. What should worry the bulls is that its structure can easily be seen as a five-wave impulse. the pattern has been developing within the parallel lines of a trend channel. Wave (2) occurred during the Financial crisis of 2007-2009. Wave (3), which is also enveloped in a nicely-looking price channel, was followed by an expanding flat correction in wave (4). The coronavirus crash fits in the position of wave ‘c’ of (4). Nifty 50 to Begin 2021 at Its Worst Risk/Reward Ratio Ever Both corrective waves – (2) and (4) – ended shortly after touching the 61.8% and 38.2% Fibonacci levels, respectively.
If the analysis so far is correct, the phenomenal rebound we’ve been witnessing over the past nine months must be wave (5). Unfortunately for the bulls, the theory states that a three-wave correction follows every impulse. This means that once wave (5) is over, we can expect a major decline to drag the Nifty 50 back to the support of wave (4). Where exactly the top will form is impossible to tell. However, assuming a reversal near 14700 - 14800 and bearish targets near 7500, we are talking about a possible 45%-50% drop. Given that its P/E ratio currently stands at an all-time high of over 37, it is not that hard to image the Nifty 50 being cut in half. As we head into 2021, the Indian benchmark has never looked riskier for investors.
Good Luck
The weekly chart reveals the entire price history of the Nifty 50 since its inception. What should worry the bulls is that its structure can easily be seen as a five-wave impulse. the pattern has been developing within the parallel lines of a trend channel. Wave (2) occurred during the Financial crisis of 2007-2009. Wave (3), which is also enveloped in a nicely-looking price channel, was followed by an expanding flat correction in wave (4). The coronavirus crash fits in the position of wave ‘c’ of (4). Nifty 50 to Begin 2021 at Its Worst Risk/Reward Ratio Ever Both corrective waves – (2) and (4) – ended shortly after touching the 61.8% and 38.2% Fibonacci levels, respectively.
If the analysis so far is correct, the phenomenal rebound we’ve been witnessing over the past nine months must be wave (5). Unfortunately for the bulls, the theory states that a three-wave correction follows every impulse. This means that once wave (5) is over, we can expect a major decline to drag the Nifty 50 back to the support of wave (4). Where exactly the top will form is impossible to tell. However, assuming a reversal near 14700 - 14800 and bearish targets near 7500, we are talking about a possible 45%-50% drop. Given that its P/E ratio currently stands at an all-time high of over 37, it is not that hard to image the Nifty 50 being cut in half. As we head into 2021, the Indian benchmark has never looked riskier for investors.
Good Luck
DO WHAT OTHERS DON"T KNOW AND DON'T DO WHAT OTHERS KNOW
Penafian
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