Saturday, March 19, 2011

NEoWave count on Sensex Weekly



Sensex seems to have completed its wave B with truncated wave c of Double Zigzag. As a result wave C down opens which can consume around 16-18 months.(As per Neely in a Flat wave C is equal to time taken by A+B/2).
Now there are 2 possibilities
Either wave C takes normal imuplse
Or it can be Terminal Impulse.


As of now its not clear which shape it takes. So I continue to label it as both 1/a , 2/b....
Now as wave C could take 16-18 months of time , its more probable wave C takes shape of Terminal impulse, in which wave 4 over laps wave 1.



In terms of Price wave C of a Flat can be either of the three.

Normal...
.if in terms of price wave C = wave B. as per this wave C could reach 8000.

Elongated....
.if in terms of price wave C is atleast 127% of wave B, as per this wave C could reach as low as 4500.

Truncated...
.if in terms of price wave C is less than that of wave B, in this case wave C could be in range of 11k - 12k

So its best for investors to stay out of the equity market for atleast 18 months. Buy and Hold is not right strategy.


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