Nifty Future Trend 2025 Based On Elite Wave Theory
Elliott Wave and Fibonacci Retracement Analysis of Market Trend
Introduction
The image presents a technical analysis of a financial market instrument using Elliott Wave Theory and Fibonacci retracement and extension levels. The chart showcases a completed five-wave impulse sequence followed by an ongoing corrective ABC pattern. This analysis is crucial for traders and investors to anticipate potential price movements and identify key support and resistance levels.
Elliott Wave Theory Interpretation
The chart follows Elliott Wave Theory, which is based on the principle that financial markets move in repetitive cycles driven by crowd psychology. The structure in the image follows the five-wave impulse pattern (1-2-3-4-5), which is then followed by an ABC corrective pattern.
Impulse Wave (1-2-3-4-5)
Wave (1): The first upward move, marking the initial bullish trend.
Wave (2): A corrective move that retraces part of Wave (1).
Wave (3): The longest and strongest wave, confirming the uptrend.
Wave (4): A pullback after Wave (3) but does not overlap Wave (1).
Wave (5): The final push higher, completing the bullish trend.
The impulse sequence peaks at Wave (5), suggesting the exhaustion of the bullish trend.
ABC Corrective Wave Pattern
After the completion of the five-wave cycle, the market enters a correction phase, labeled as Wave A, Wave B, and Wave C.
Wave (A): The initial decline from Wave (5), signaling a trend reversal.
Wave (B): A corrective retracement to the upside but remains below Wave (5).
Wave (C): The final downward move, often extending beyond Wave (A).
Wave (C) typically completes the correction at key Fibonacci extension levels.
Fibonacci Retracement & Extension Levels
Fibonacci levels play a crucial role in identifying key support and resistance zones during both the impulsive and corrective phases.
Retracement Levels (for Wave B)
38.2% (24,985.80)
50.0% (24,634.75)
61.8% (24,283.75)
These levels are potential resistance zones for Wave B before the continuation of Wave C downward.
Extension Levels (for Wave C Target)
100.0% (23,147.45)
127.2% (22,338.35)
161.8% (21,309.15)
These levels act as potential support zones where Wave C may find a bottom.
Key Observations
Wave (5) marked the market top and initiated the ABC correction.
Wave (B) is retracing within Fibonacci levels and may confirm a reversal.
Wave (C) is expected to extend towards 127.2% or 161.8% levels, indicating potential downside targets.
A bullish reversal is likely near the 161.8% extension level, aligning with past market behavior.
Conclusion
This analysis suggests that the market is in a corrective phase following an extended uptrend. The Fibonacci retracement levels provide key resistance points for Wave B, while the extension levels highlight possible targets for Wave C. Traders should monitor price action near these Fibonacci levels for potential trend reversals or continuation patterns.
This structured approach helps traders and investors anticipate future price movements with a higher degree of confidence using Elliott Wave and Fibonacci analysis.
Introduction
The image presents a technical analysis of a financial market instrument using Elliott Wave Theory and Fibonacci retracement and extension levels. The chart showcases a completed five-wave impulse sequence followed by an ongoing corrective ABC pattern. This analysis is crucial for traders and investors to anticipate potential price movements and identify key support and resistance levels.
Elliott Wave Theory Interpretation
The chart follows Elliott Wave Theory, which is based on the principle that financial markets move in repetitive cycles driven by crowd psychology. The structure in the image follows the five-wave impulse pattern (1-2-3-4-5), which is then followed by an ABC corrective pattern.
Impulse Wave (1-2-3-4-5)
Wave (1): The first upward move, marking the initial bullish trend.
Wave (2): A corrective move that retraces part of Wave (1).
Wave (3): The longest and strongest wave, confirming the uptrend.
Wave (4): A pullback after Wave (3) but does not overlap Wave (1).
Wave (5): The final push higher, completing the bullish trend.
The impulse sequence peaks at Wave (5), suggesting the exhaustion of the bullish trend.
ABC Corrective Wave Pattern
After the completion of the five-wave cycle, the market enters a correction phase, labeled as Wave A, Wave B, and Wave C.
Wave (A): The initial decline from Wave (5), signaling a trend reversal.
Wave (B): A corrective retracement to the upside but remains below Wave (5).
Wave (C): The final downward move, often extending beyond Wave (A).
Wave (C) typically completes the correction at key Fibonacci extension levels.
Fibonacci Retracement & Extension Levels
Fibonacci levels play a crucial role in identifying key support and resistance zones during both the impulsive and corrective phases.
Retracement Levels (for Wave B)
38.2% (24,985.80)
50.0% (24,634.75)
61.8% (24,283.75)
These levels are potential resistance zones for Wave B before the continuation of Wave C downward.
Extension Levels (for Wave C Target)
100.0% (23,147.45)
127.2% (22,338.35)
161.8% (21,309.15)
These levels act as potential support zones where Wave C may find a bottom.
Key Observations
Wave (5) marked the market top and initiated the ABC correction.
Wave (B) is retracing within Fibonacci levels and may confirm a reversal.
Wave (C) is expected to extend towards 127.2% or 161.8% levels, indicating potential downside targets.
A bullish reversal is likely near the 161.8% extension level, aligning with past market behavior.
Conclusion
This analysis suggests that the market is in a corrective phase following an extended uptrend. The Fibonacci retracement levels provide key resistance points for Wave B, while the extension levels highlight possible targets for Wave C. Traders should monitor price action near these Fibonacci levels for potential trend reversals or continuation patterns.
This structured approach helps traders and investors anticipate future price movements with a higher degree of confidence using Elliott Wave and Fibonacci analysis.
Disclaimer
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