Short term Elliott Wave view suggests the pullback to 11266.48 on August 15, 2019 low ended wave ((2)). Wave ((3)) is in progress and subdivides as a 5 waves impulse Elliott Wave structure. The current move higher should eventually break above wave ((1)) high on July 4, 2019 at 12656.05. However, to validate the view and avoid the potential of a double correction, Index still needs to break above 12656.05.
Up from 11266.48, wave 1 ended at 11853.14 as an impulse in lesser degree and wave 2 pullback ended at 11557.42. Wave 3 is proposed complete at recent high at 12471.83. The last high at 12471.83 almost reaches 161.8 Fibonacci retracement of wave 1, which supports the bullish view that it’s a wave 3 of an impulsive structure from August 15 low. Wave 4 pullback is in progress to correct cycle from August 26 low before Index resumes higher again. Potential area for wave 4 is 23.6 – 38.2 Fibonacci retracement of wave 3 at 12120.8 – 12254.7 where buyers can appear for further upside. We don’t like selling the Index and expect dips to find support in 3, 7, or 11 swing as far as pivot at 11557.42 low stays intact.