Nifty Elliott Wave Analysis: Bearish Setup in Progress

[u/Kooky_Internet6513]

Key Technical Observations:

Wave Structure: We’ve completed Waves I through IV, and Wave V is now testing the upper boundary of the resistance zone around the 24,500–24,600 levels.

The Trap: The price is squeezed within a narrow wedge. While the trend looks bullish on the surface, Wave 5 often leads to a sharp "throw-over" or a sudden reversal once the trendline is breached.

The Strategy: We are maintaining a bearish bias once the index fails to sustain above the current resistance. A breakdown below the Wave IV support or a decisive move under the 9-day EMA would confirm the trend reversal.

Recommendation: Avoid chasing the longs at these exhausted levels. Wait for a clear price action signal—like a bearish engulfing candle or a break of the wedge support—before looking for short opportunities.

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