Nifty: Fibonacci, Diametric and Time rule!

Nifty and Global markets started with increase in volatility with start of New Year 2019. I think this year will go in history to be known for its volatility. It is post 2008 that I am seeing a strong distribution across the global equity markets.

Now look at the below Nifty chart with a classical Diametric pattern as per Advanced Elliott wave – Neo wave

Nifty 60 mins chart:

Above chart clearly shows that after the sharp selloff seen in September and October prices have continued to move in non trending fashion. Prices have not even retraced 61.8% of the entire fall so far and has consumed more time. This is simple but effective way to gauge the direction of the overall trend by looking at Price and Time behaviour.

We are currently witnessing a classical distribution in the form of Diametric pattern and post its completion the bigger degree downtrend will resume. Topping process can be tricky and consume time but unless we see decisive momentum above 11100 we will continue to look at current move as temporary and the major down move should resume soon.

January is known as a seasonal topping month and let us see if this time as well we can start the year with a BIG trend!

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