Chart
1. We had inside bars on two occasions (April & over the last 3 days in July) - Marked in a BOX - This was only a sharp short reversal which may not last tomorrow.
In an Inside Bar - Price remains within a large candle For Eg. on 1st Jul - We had a down move big black candle. We then had 3 smaller candles within this range. The third candle went slightly below the Big Black Candle which had a low of 5612 - and the smallest candle made a low of 5610 - In this inside bar setup market reverses sharply which is what we experienced today.
You will see a similar setup in April - Big White candle , 2 black candles and a small white candle and then again reversal.
2. Trendline remains intact - Big Blue Line
3. We have a divergence in the 5 period RSI - Price moved higher but RSI did not
4. Woodies CCI still below 100 indicating that there's no major reversal
5. Lower Bollinger Band (blue band) is flat indicating there is no momentum in this upmove.
6. Price has never closed above the outer red bollinger band - indicating no momentum. Back in March & April you can see how price closed above the outer red bollinger band.
7 Several other bollinger band strategies indicate that there is no momentum and market will likely head down.
8. Wolfe Wave ETA - Estimated Time of Arrival was yesterday / today. indicated by the vertical lines drawn on the chart
9. Wolfe Wave Targets met twice - Now time for reversal.
10. Renko chart below is based on price action and not time. Price is represented by blocks 70 points. In the chart you see that though price moved up today we still have a red block below the 5 MA on the Renko - Historically when the block moved below 5 MA price falls. The price shows lower in Renko 5623.
11. In Renko also price has not violated the trendline.
12. CNXIT has a WW target around 6700-6800 earlier post on CNXIT almost met.
13. Bank nifty also similar situation as Nifty
