IndicesKSE 100PSX

Eliot Wave Analysis & Forecast – KSE 100 Index – KSE100 – D1 – 20210301

KSE100 daily analysis
KSE100 daily analysis, Daily Elliottwave Analysis KSE100

Refer to my previous analysis of KSE100 on 28th January, 2020 , prices are moving according to your Elliott Wave bias and in my view medium term top is placed 47339.21 on 4th February, 2021.

If we look at waves, blue wave 1 of green wave III has started from 27046.71 (Low of  26 March, 2021) and had been completing by placing medium term Top at 47339.21. This blue wave composed of five sub-wave structure (red 1- 5) and out of these five red waves, wave 3 has extended.

Red wave 2 of blue wave 1 of Green wave III has shallow correction and after this shallow correction, we expected that Red wave 4 of blue wave 1 of Green wave III was deep correction,  and as expected, it formed triangle formation (green abcde) in Red 4 wave.

Now I think blue wave 1 has completed its structure,  and we are expecting correction in blue wave 2 which according to Elliott Wave principle, can retrace up to previous low (27046.71) but not beyond that but, big question is that will this wave will have shallow or deep correction?. In fast trend markets, the correction idealizes 38% Fibonacci targets and in normal economical conditions, it can retrace up to 50% or even 61% Fibonacci levels. And if, the momentum of market is slow, then it can retrace up to 100% Fibonacci level.  Usually corrective wave hard to predict by its shape or structure but I think the ideal target will be 50% of Fibonacci Level (Around 37500-38000), which is also one level  lower of main red wave 4.  Once this blue wave 2 finished, we will see a nice sharp rally towards previous high near 53000 or far beyond that in coming years.

Only break and daily close above 47339.21 will invalidate our preferred scenario, but if happen, then there is limited and narrow space for upward movement before correction will start.

 

muhiuddin

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