Saivenkat. "5522 is containment on the upside". That menas price should not go any higher than that before the correction that will towards the 5374 containment level for the correction. Once the correction is over, then the market will head higher.
5583 was a reference point, as I was simply stating that it is not going to be hit this week. This is because it is my WR3 (3rd resistance of the week, thus WR3) for this week, and the WR3 from last week was also hit. I do not ever remember since I constructed my S&R's in 2007 that the 3's were ever hit in back-to-back timeframes (This case, back-to-back weeks). This makes 5583 virtually impossible (Based on past experience.) to be hit.
I do not pay attention to PE data, so let me give you a longer view through the eyes of my methodology:
With the perfect bounce off the top of the weekly cloud and the confluence of events that took place, that virtually puts the weekly tenken on the radar at 5687, and most likely the kijun at 5756. This is in spite of how OB the monthly is. For now, I'd be real weary even after the tenken was hit, as the monthly could, once again, still the show. One look at the monthly still shows the trip is still headed further south. What too look for on the monthly is a move to circa 4900, but there will be lots of support along the way. After this uptrend is complete, we should still be under the daily cloud, and naturally above the daily tenken and kijun, and the weekly cloud. Therefore, it is safe to say that it still appears we are headed to circa 4900, it will not have the same strong leg that began in the 6000's, because of all the strong support. We have already seen when fate meets up with the weekly cloud, even though a strong monthly TF had other ideas. This move we are in the middle of was predictable from the 6000's. The only thing that changed was the top of the cloud, but then all clouds are dynamic.
Side note: I know I said 5587 will not be hit this week, because of 4 years of past history. Just an off-the-wall thought. I was talking to someone that I hooked up with through my blog. I was telling him how I haven't had a losing week in trading in 2 years. It was 2 weeks alter the streak came to an end. I not only made the forecast 5587 will not be hit this week, but even keeping my fingers crossed. Egg tastes good, but don't feel good when they're on my face.
Sorry to bump in ..4pips bro..
1) Do you feel that when nifty hits 5522 or 5583.. this correction phase is finished, and after which the consolidation phase will be there.. after which next up move should begin with! Is this what you mean bro?
2) Does not the market still stretched in valuations.. when PE of nifty is still hovering high at 20+ levels.. Is this good time for making stock specific investments.. or shall one wait till nifty makes another down south journey to 4800 levels?
