NSE index shows signs of reversal of the downtrend: Technicals

Reuters August 23 | Updated on August 23, 2019 Published on August 23, 2019

The NSE index may reverse the downtrend, analysis of its Fibonacci levels and wave pattern shows.

The index's wave pattern suggests that it has either completed or is close to completion of the final sub-wave v within the final wave C of the correction that started on June 3.

Within sub-wave v, index shows a lower degree, three sub-wave structure with a count of three, three and five, typically seen in the final wave.

Based on the length of sub-wave i within wave C, sub-wave v was expected to fall close to 10,660; the index made a intra-day low of 10,637.15 and has bounced above the 10,660 level, which too suggests that the correction may have completed.

Completion of wave C may lead to a new five-wave uptrend unless the correction turns out to be a triangular correction or a combination of corrective pattern.

In the near term, the index has resistances at 10,719.42 and in the range of 10,805.56 to 10,828.45

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Published on August 23, 2019
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