27% Drop ahead in few weeks….
I think, this analysis will help readers for a safe exit of their cash positions at the right time. To say it bluntly; NIFTY is poised to fall around 27% from the current level in few weeks time. That is to 3800.
Why I am saying so…
Look at the chart attached. I had made measurements from the top from where the crash in 2008 began. I left the software to calculate the rest. To my surprise, I could see laser precision accuracy at the right levels. I took the Top most point A, clicked the mouse and left the software to calculate the rest. Look at Point “B”. It accurately matched and that was the bottom most point of the crash. The next two higher levels (Dashed Blue lines) was breached , which had made supports earlier, were breached thereafter.
Now, it has precisely resisting at point C. How it touched “C” is also interesting. It made a chart pattern and the top most point of this pattern touched “C”. Now its turn is to come down.
What I expect NIFTY to do is to take support at the horizontal green line. This point will be below 27% from the current level.
But… If NIFTY breaks out above 5400 convincingly, then we will see it shooting above the all time high.
