The BSE Sensex has seen a decline from Feb 22th to Feb 27th. The question is if this decline is a new move down or just a retracement of the move from Dec 20th. The former would mean that more downside is yet to come, while the latter concludes that the BSE Sensex is in a new bull market.
The above chart shows the smaller wave counts. Green A(5waves) and B(2waves) being the bullish count with C(5waves) to follow or Green 1(5waves) and 2(2waves) with 3(5waves) to follow. Since the count cannot distinguish between C or 3rd wave. The only option is to measure the intensity of the wave to distinguish a C from a 3.
1) If A = C, C would terminate at approximately 16859.21 or 16828.33 (S&R).
2) If the decline is rapid and goes past 16000. It is most likely a wave 3.
Trading both possibilities in the short run would mean shorting the open with a stop at March 2nd highs @17731.88
Posted on Sunday 4th
1) If A = C, C would terminate at approximately 16859.21 or 16828.33 (S&R).
2) If the decline is rapid and goes past 16000. It is most likely a wave 3.
Trading both possibilities in the short run would mean shorting the open with a stop at March 2nd highs @17731.88
Posted on Sunday 4th
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