Re: Market correction
Hello,
There is some guy name Airbus who gives his Nifty opinion on his blog & he posted following on 12th Jan'2010 when market were only looking up & no sign of correction. I didnot give much importance to his opinion apart from just glancing at it. Now that market has turned around all of a sudden, I remembered his writing which is as below :
Quote
Upload Date: 12th JAN, 2010
NIFTY (5249)
Pivot Point trading levels for the Month of JAN is as under.
S2 S1 PIVOT R1 R2
4844 5023 5122 5301 5400
Pivot Point trading levels for the YEAR 2010 is as under.
S2 S1 PIVOT R1 R2
1638 3419 4321 6102 7004
Negative divergence is seen on Nifty Charts which is a sign of concern going forward, but it is hard to say with pin point accuracy of start of an impending correction.
It has been observed that next year's candle always intrudes into previous year's candle by atleast 25% if not more, which can take us to a level of 4500 in the least. Other indicators are also pointing towards this target. When will it start correcting? It can happen from as early as tomorrow or a week later or a month later, hard to say but it will happen is what I can say.
Cheers
Airbus
UNQUOTE
Though he has not given any technical analysis how he reached this conclusion but on the hindsight now it seems he was not too far from reality & only remains to be seen if we will actually go till 4500 or change gear earlier. Does anyone has any idea what could be basis of his analysis ?
Alok Tewari