Lets analyze Nifty future move for May month using Harmonic pattern using AB=CD and Crab Pattern.
Nifty Harmonic pattern
The Harmonic pattern bearish AB = CD formation
- AB leg is from 5118 to 6415 took 16 Weeks to form with a rally of 1313 points.
- BC leg is from 6415 to 5933 (which is 38.2% retracement of 5119 to 6415)
- CD leg will take another 16 weeks to complete and rally of 1313 points
So Target of CD leg comes at 5933+1313 =7246 and Time Frame comes at 16 Weeks , Currently we are in 13 week so in next 3 weeks if this pattern stands valid we can see an upmove till 7200-7250.
Nifty Crab formation
The Harmonic pattern bearish crab formation is also in making and will get activated only above 6869 NS
- XA leg is from 6338 to 4531 with a rally of 1802.
- AB leg is from 4531 to 5630 (61.80% Fibonacci retracement).
- BC leg is from 5630 to 4770 (78.60% Fibonacci retracement).
- CD leg is likely to complete around 7500 level (161.80% Fibonacci retracement of XA leg.)
So once 6869 is broken initial target of pattern comes around 7020(261.8% of BC leg) and sustaining above it 7447 (which is 161.8% of XA leg). Once the target is achieved Nifty can see a fall around 6400-6500 where 200 DMA will exits.