- January 4, 2010
- Posted by: Ramki Ramakrishnan
- Category: India
Two consecutive closes above the prior significant high means we should re-evaluate the wave counts and this has been done on the chart. The main suspect until this time is what I have labelled a 5th wave of the third wave. That looks like a 3-wave movement withthe 3rd leg measuring the same as the first leg. However, we now have to go along with the view that the 3rd leg was actually an extending wave within the aforesaid 5th wave itself, which is why we got a swift down move as a 4th of the next degree. We are then currently in the 5thwave of the sequence that started off back in Q4 of 2008. The targets of this fifth wave are mentioned on the chart, and we should go with that view in our trading activities until proved wrong by subsequent movements.