Bank Nifty to test 20900 levels (Elliott Wave Forecasting)

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From February 2014 till date Bank Nifty is moving in a rising channel formation which clearly indicates that the trend for this index is positive. A channel normally helps to identify support and resistance levels. Prices recently arrived near the support of the channel and has witnessed a bounce.

As per wave theory, prices are moving in a triple corrective pattern (a-b-c-x-a-b-c-x-a-b-c). Recently it completed wave b at 18226 levels of the third correction and it is set to start the last leg that is wave c of the third correction. Wave b has also retraced 80% of wave a, which means it is forming a flat pattern. The third correction is a flat pattern, this indicates that wave c will touch the end of wave a or can exceed above it marginally. Thus the level of 20900 is imminent.

In short, As far as Bank Nifty is moving in an upward sloping channel the bias remains positive and prices can test the level of 20900 in near term.


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