NSE Midcap 50: Zigzag Pattern near completion

NSE Midcap 50 is an index and consists of 100 stocks which include Adani Ent, ABB, Bharat Forge, Bhushan Steel, Biocon, CESC, Dish TV, Divis Lab etc.

NSE Mid Cap 50 Daily Chart


NSE Midcap 50 is moving lower in the form of corrective pattern. There are many corrective patterns, but the index is moving in a Zigzag pattern. Zigzag pattern has three legs (a-b-c) and is one of the simplest patterns to identify.

Here NSE Midcap has probably completed the last leg and currently it is moving in a positive direction. The index can move till 6800 levels over short term. A decisive move above 6800 will not only open further positive possibilities but will also give bullish break in falling red channel pattern. Momentum Indicator RSI has shown positive divergence (shown by blue line).

From wave perspective, NSE Midcap made a high on 9th January 2013 and thereafter it is moved lower in the form of 5 wave structure (impulse) which completed wave A. Then it move up in a 3 wave structure and completed wave B which is a counter trend and then it moved in form of wave C down and made a low 6330. Wave C has 5 waves on downside and it is very near in completing the last leg.

In short, NSE Mid Cap 50 will reach 6800 in short term as far as 6530 is intact on downside. A move above 6800 will infuse buying pressure and prices can reach till……


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