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I posted a similar chart in another thread, only it was at the beginning of the day, before the move. I told them to watch for a sharp reversal of this market.
Very simply, the 4-hour stochastics was very OB, and price action was approaching the bottom of the 4-hour cloud, which is strong R. This reversal should be headed back to the 4-hour kijun at 5377. From that point, you will notice the market go sideways for awhile, as it builds up for what should be a move to the weekly tenken at 5687. As this journey progresses, the thing to keep the eyes peeled for is the condition of the monthly chart. It is still very OB, so implications are when it reverses, it could be very sharp (Today's move was only a correction within a correction. Longer term , because of what the monthly indicating, the market could move to 4900 and even much lower. As a matter a fact once we get a weekly below the weekly cloud (currently 5048), that will be when you notice another strong leg on the DOWN. There is nothing imminent
In the mean time, we should see the sideways action I mentioned, and then another move UP towards the weekly tenken. At this point the only thing that concerns is a possible consolidative base that would form under the 4-hour cloud.
What a crash...! I wish I could have had an indication that markets might crash to such a huge extent...
I guess the downtrend is still full on... until Nifty consolidates and builds a new base...