Nifty bounce back to upward

Nifty bounce back to upward after it has corrected. The abcde correction which is called a diagonal triangle or bullish diagonal triangle or ending diagonal triangle. It is comprised of five small wave which are named abcde. All the subwaves of abcde are made up of three waves, not five waves. If any of the small abcde waves are made up of five waves then it is not diagonal triangle. The bounce back is very sharped and has a very dramatic reversal to upwards.

NOTE: In the daily chart of yesterday the 29th March 2012, there is a bullish counter attack candle where it took support from the 200 day moving average of 5140 in nifty. The small resistance is at 50 day moving average of 5318 in nifty.

In the weekly chart there is a hammer candlestick which is also a very bullish sign.

The daily stochastic is showing BUY signal where it just pop up from the oversold condition.