NAIROBI ALL SHARE INDEX (NASI)

You can see a completed impulsive Elliott Wave represented by numbers 12345 to complete a larger degree wave (A) or (1). The completion of this impulse implies that the largest correction since the start of the impulse wave is at hand. In fact the correction has started (where we have wave A at about 139. Wave B is developing (as indicated by the UP ARROW) whose targets (ending) are the green lines/levels). Once wave B completes i will expect the NASI to drop to targets indicated by the blue lines and most especially the 122.07 or 105.60 being 50% and 61.8% retracement of the impulse.



The structure of an ideal impulse wave is shown below:

People!

We are in a bear-market rally. That blue wave [c] of C is definitely complete. My preferred Elliott Wave count suggests an Elliott Wave triangle where waves A B and C (in black) are complete.

I now expect the NSE 20 share index to rally to about 4282s or even towards 5000s but should not surpass 5482 (the wave B high). The completion of this rally will mark the end of wave D.

I will abandon the above scenario if the index falls below 2420s the wave C low.

The problems the gpvernment has been facing of low revenues, difficulties with debt repayment and citizens loss of employment should be slightly alleviated as wave D rallies.