Minor wave 1 is expected to be over at 5055 or may go up to 5070/95 then retrace for the wave 2.
Hourly RSI reading suggests that it is overbought state and is already signaling -ve divergence. However we need to keep in mind that in a trending phase RSI may remain in the over bought/sold state for a longer time than we expect. Daily RSI is yet to reach the overbought state. There may be a minor dip at this stage. However as per Elliott wave we can expect the wave 2 now and this may retrace upto 4949 a 36.8% of the rise from 4770 to 4959.35. However 2nd wave can be devastating and may go more deep as well.
If this wave count is correct then a retracement can not exceed 4770.
Staying above 4962 [5 Day EMA], 4915 [5 Day SMA], 4898 [Weekly pivot] are important for this rally. These levels will also act as support during the correction.
NIFTY:
Elliott Wave analysis of hourly chart:
Hourly RSI reading suggests that it is overbought state and is already signaling -ve divergence. However we need to keep in mind that in a trending phase RSI may remain in the over bought/sold state for a longer time than we expect. Daily RSI is yet to reach the overbought state. There may be a minor dip at this stage. However as per Elliott wave we can expect the wave 2 now and this may retrace upto 4949 a 36.8% of the rise from 4770 to 4959.35. However 2nd wave can be devastating and may go more deep as well.
If this wave count is correct then a retracement can not exceed 4770.
Staying above 4962 [5 Day EMA], 4915 [5 Day SMA], 4898 [Weekly pivot] are important for this rally. These levels will also act as support during the correction.
NIFTY:
Elliott Wave analysis of hourly chart:
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