In August, 2014, we used the weekly chart of the India Index ETF to demonstrate how accurate Fibonacci levels could be, even on the largest degrees of trend. The article was called “Fibonacci Precision, The India ETF” and if you click on the link you will find this chart:
Note how prices found support exactly at the 61.8% retracement level and the uptrend resumed. This textbook correction plus the wave structure of the price action before it, gave us plenty of reasons to conclude that “future looks bright for the India Index ETF.” Today, half a year later, the India ETF is trading significantly higher.
The only difference is that wave (2) turned out to be much smaller than we expected. However, this is just more good news for investors. But what to expect from now on? As the chart shows, the Elliott Wave Principle suggests there is still a lot of upside potential. In addition, India’s BSE SENSEX is looking very strong as well. This means we should prepare for fresh new highs and stay with the trend. It is likely to continue.
