As per my earlier view of Elliott wave I am firm on that target but some positive sign has been found on the weekly chart which shows we are not going to break larger head and shoulder pattern worth 5500 point at this time and probably we are now forming another right shoulder of the pattern.
As shown on the chart RSI is forming positive divergences and forming triangle and inverse head and shoulder pattern.
The length of the head and shoulder on RSI is 24 means breakout above 52-53 can take to 76-77 levels and along with this sensex may rise by 24-25%.
If we go by time series then this is the ongoing 5th quarter which is again holds significance as per Fibonacci numbers for reversal.
If this happen then another shoulder of head and shoulder will develop around 18500-19000 levels, the level is nearly 2000 point higher than 233 days exponential moving average and this will be the trap for the long term investors as general phenomena of the investors is that when index rise above long term moving average it is long term bull market but in our case this rally is the part of the head and shoulder only, and again market will move down as per earlier view of head and shoulder and larger degree wave C and Super cycle wave 2 correction.
