Past days wave action transformed the drop from November 6th into a three-wave corrective pattern. The road to the upside is now cleared. We forecast strong gains for the weeks ahead as the Indian market appears to be inside a third wave to the upside.
We'll let the wave action develop further before we forecast here specific targets. For the moment our long position as well as forecast seem to be on the right track as more evidence adds up for our case.
However, third waves do tend to extend on a regular basis. This may happen here as well and we are actually closely watching the Nifty & Sensex for that. We're looking if price action takes off outside the light blue trend channel (to the upside). If this happens swiftly and impulsively we may be in an extended 3rd wave. In that case we would readjust the label (iii) and (iv) for i and ii. Hence we would be currently starting a iii of (iii). Now if that is the case we'll know by the character of the move. It should be complemented by increasing momentum and possibly confirming news.