The stop loss was hit last week. I had counted waves wrong. Third third wave had a massive extension and I was not able to figure that out last week.
Long Term: In the long term, the market has just about reached an important correction level (78.6% correction) from the massive dip in march. Successfully breaching this will conclude that the recent rally is not a correction, but rather and uptrend. I, personally, think that the market will breach this level. Fundamentally also we are close to a vaccine, the economic activity is improving and so on.
Medium Term: As advised last week, the expectation of medium term continues to hold. We seem to be in the third wave. It could take us upto 11,800 levels.
Short Term: In the short term, the correction that ensued (after the rally till Wednesday, 22 July) was a combination of a zig-zag followed by a flat. Wave 5 got over at the open on 29 July, Wednesday. We are again in a correction which also seems to be a combination - Zig Zag followed by another unfolding Zig Zag. I think this Zig Zag would take the market to 10,950 levels. That will also close so many gap openings. But the trend is up and the correction is an opportunity to buy.
How will I trade this? I won't trade this. I need to figure out if the pulse of the market I have feeling is correct this time or not.
And disclaimer as always. I could be right. I could be wrong. I am always learning. Trade at your own risk.
Long Term: In the long term, the market has just about reached an important correction level (78.6% correction) from the massive dip in march. Successfully breaching this will conclude that the recent rally is not a correction, but rather and uptrend. I, personally, think that the market will breach this level. Fundamentally also we are close to a vaccine, the economic activity is improving and so on.
Medium Term: As advised last week, the expectation of medium term continues to hold. We seem to be in the third wave. It could take us upto 11,800 levels.
Short Term: In the short term, the correction that ensued (after the rally till Wednesday, 22 July) was a combination of a zig-zag followed by a flat. Wave 5 got over at the open on 29 July, Wednesday. We are again in a correction which also seems to be a combination - Zig Zag followed by another unfolding Zig Zag. I think this Zig Zag would take the market to 10,950 levels. That will also close so many gap openings. But the trend is up and the correction is an opportunity to buy.
How will I trade this? I won't trade this. I need to figure out if the pulse of the market I have feeling is correct this time or not.
And disclaimer as always. I could be right. I could be wrong. I am always learning. Trade at your own risk.
Comment:
Market played out exactly as projected!