$NIFTY reaching a Warning area for Indexes Bulls

As it is well known, Elliottwave-Forecast have been bullish the Global Indexes for the last 4 years and we have been able to capitalize on most dips looking for extensions in the Yearly charts which at the end of the day are the Maps that this market follows. In Elliottwave-Forecast, we believe there is only one market as a whole and hence why our analysis / forecast uses a lot of market correlation and is not done in isolation. We believe the Indexes always will be bullish as they follow the trend of human evolution and growth but they would of course do some corrections and depending of the degrees, the corrections could be sizable like the one we saw in 2008. We do not believe in Picking tops because picking is a complete mistake and an Illusion after all, markets can extend as much as they like. Having said that, we don’t like to ignore the warning signs either and hence we have been tracking a series of Indexes around the World with focus on 100%  Fibonacci extension off the all time lows.

At this moment, we  are seeing some Indexes reaching this extension for example $NIFTY -NSE from India. It’s an Index which not many trade everyday but it is part of the whole Market and also follow the same cycles in time and price as rest of the group of the World Indices. In the following chart we area showing the $NIFTY in the Quarterly period, we can see how from the 0 line the Index is showing a perfect 7-7-7 sequence which always is an area when bulls will take profit and wait for the dips. Looking at the chart, at least a 7 swings sequence is ending and can create series of  drops of varying degrees and could even, without a doubt, correct the entire cycle from the Zero line as well. In Elliottwave -Forecast,we follow pivot system in which we will know the degree and as of right now, no serious selling has happened but can escalate into something bigger. Previously, we have presented a similar warning like in this Interviews with Dale Pinkert Wacth it and this blog about the EURUSD pair in which the same sequence was reaching the point in which the $NIFTY is at the moment.

Our advise is to be careful, this is not a sell signal but understanding that the map of the market needs to be seen in the Yearly,Quarter and Monthly charts and when targets reach in the maps calling extension within the extension needs to be done with a lot of precautions. As always ,Elliottwave -forecast is a paid services and we can not be showing our whole opinion but from time to time, we do share some opinions and views publicly with the idea of a warning . It’s $9.99 for the 14 day Trial but for a limited time, you could try our services completely FREE at www.Elliottwave-forecast.com 

Getting back to the chart, Nifty Index could still do another extension higher within the 7 swings but is close to give up and minimum correct the cycle from 2009 or 2011 before more extension within the Yearly cycle is seen.

Thanks for reading & Good Luck!

Eric Morera

Founder of Elliottwave-Forecast.


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