The decline to 19054 completed wave ((X)), and the Index has since resumed the rally in the form of a triple correction (W)-(X)-(Y)-(X)-(Z) where wave (W) ended at 19865, wave (X) ended at 19495, wave (Y) ended at 20590, second wave (X) ended at 20318, and wave (Z) is currently in progress towards 20963 – 21999.
The wave (Z) rally from 20318 ended the first leg at 20685 as wave ((w)). The Index is currently in a wave ((x)) pullback, ideally towards 20408 – 20502 before the rally resumes. We do not like selling the proposed wave ((x)) pullback. As far as the 20318 pivot holds in the wave ((x)) pullback, expect buyers to come for 3 waves higher at minimum to correct the decline from 20685 per Elliott Wave hedging idea.
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