The three legs in any direction are 1-2-3 or A-B-C.
It is difficult to differentiate between them conclusively till the 4th leg forms.If the 4th leg does not enter the territory of the 1st leg then 1-2-3 is confirmed and wave 5 is expected and an Impulse is formed.
However,if the 4th leg enters the territory of the 1st leg then an ABC is confirmed.
Currently that seems to be the case in Nifty.
The following 4 hourly chart of Nifty shows the 4th leg entering the 1st as shown by the breach of the yellow line
[endpoint of 1st leg].
Right click on chart and click on view image for magnification
Nifty 4 hourly chart
There is a remote possibility that the gray line indicates the endpoint of 1st leg.But a close above that today will conclusively prove this count.
It means that a new wave has started in the upward direction.Its target is 5950, the 61.8% retracement level as shown in the chart below.
Also note the resistance at 5970 as shown by the blue line.
Right click on chart and click on view image for magnification
Nifty 4 hourly chart
Disclaimer: The views given in this blog are for educational purposes only. Readers should exercise personal discretion and take expert advice before taking any action in the stock market.The author of this blog is not responsible for any losses which anyone might incur in the stock market by acting on these views.
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